December 2022
27Dec

UAE’s Pension Authority raises awareness on incorrect contribution practices

Private sector entities that do not pay monthly contributions or provide incorrect data for their Emirati employees risk incurring additional penalties and, under certain conditions, imprisonment,' as per the federal pension and social security law. At the end of its campaign to educate insured Emiratis and the entities in which they are employed about an insured’s rights and duties in accordance to the NAFIS programme, the General Pension and Social Security Authority (GPSSA) stated that charging an insured person with...

December 27, 2022
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19Dec

Top-rated retirement systems around the globe

A new report from Morningstar evaluates retirement systems in eight “highly educated and wealthy countries” often cited in independent studies as being among the best in their regions. In a recent webinar reviewing the report, authors Andy Pettit, director, policy research at Morningstar, and Lia Mitchell, senior analyst, policy research, discussed some of the more effective features that they found in the countries that they studied and some areas that would benefit from change in those countries, including the...

December 19, 2022
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November 2022
09Nov

US. Rising Interest Rates Change the Math on Pensions for Some Would-Be Retirees

Higher interest rates are good for our cash and checking accounts but are not always good for pension holders. Rising interest rates have an inverse relationship to a pension’s lump-sum value. As interest rates increase, the value of a pension holder’s lump sum could decrease. Because of this, I am seeing more pension holders who want to take a lump sum do so now vs. waiting. I am also seeing annuity rates improve with rising interest rates, pushing annuity income...

November 9, 2022
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October 2022
18Oct

How Pension Plans Evolved Out of the Great Financial Crisis

Despite the recession and subsequent loss of assets value, pensions plans continued to pay out over a trillion dollars in benefits to stakeholders over the recessionary era. Public pension funds were not spared from the carnage of the Great Financial Crisis, as assets and funding statuses eroded between December 2007 and June 2009. From 2009-2013, there was a significant dip in the aggregate percentage of required contributions paid. When the economy recovered, states and other plan sponsors normalized their contribution...

October 18, 2022
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11Oct

Iceland, Netherlands and Denmark have the best pensions in the world in 2022

Today, Mercer and the CFA Institute released its 14th annual Mercer CFA Institute Global Pension Index (MCGPI). Iceland’s retirement income system has once again topped the list, with The Netherlands and Denmark retaining second and third places respectively in the rankings. As more employers have stepped away from defined benefit (DB) plans, the study also investigates the challenges and opportunities with the global shift towards defined contribution (DC) plans where individuals bear increased financial responsibility. The MCGPI is a comprehensive...

October 11, 2022
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August 2022
10Aug

These 7 African countries have recorded highest pension fund asset growth

A recent report by the Organisation for Economic Co-operation and Development (OECD) has shown that global pension fund assets grew by over 10% to $38.5 trillion in 2021. The report focused specifically on pension fund assets in 68 countries or reporting jurisdictions, consisting of 38 OECD countries and 30 non-OECD countries in Eastern Europe, Asia and Africa. The report said in parts: "Overall, pension fund assets amounted to USD 38.5 trillion in a total of 68 reporting jurisdictions at end-2021. Most...

August 10, 2022
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July 2022
22Jul

UK. The effect of rising inflation and interest rates on pension schemes

The UK is currently seeing soaring inflation, with record drops in wages, and prices for goods and services sky-rocketing, resulting in a keenly-felt "cost of living" crisis. But what is the impact for UK occupational pension schemes? The consumer price index (CPI) measured inflation at 9.1% at the end of May 2022, the highest level seen since February 1982. Governments have traditionally sought to counter rising inflation by increasing interest rates, to encourage people to spend less and save more,...

July 22, 2022
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June 2022
15Jun

Millennials, Gen Z worry about retirement, sustainability, employer values

Money, politics, and stress are all factors affecting younger generations' willingness to stay in a job. A newly released study by Deloitte, a professional services networked, surveyed nearly 15,000 millennial and Gen Z professionals to see what their top priorities were in the workplace, as the Great Resignation continues. The survey by Deloitte found that workers from the millennial and Gen Z age groups are more likely to bring their political opinions to the workplace. The 2022 study by Deloitte...

June 15, 2022
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01Jun

Today’s Pensions Just Don’t Favor Millennials and Gen Z

Even in 2022, pensions still command an aura of reverence. A benefit where you work for one company for 30 years and then retire with a livable wage? And you don’t have to fret about picking investments? What’s not to like? Although pensions are increasingly rare in the U.S., they’re not obsolete. About 38% of the private workforce had access to a defined benefit plan in 1980. By 2008, that had fallen to 20%. In spring of 2020, it was...

June 1, 2022
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May 2022
31May

Survey finds 56% of U.S. employees expecting less than $500K in retirement savings

While U.S. employees say it takes $1.1 million in savings, on average, to retire comfortably, 56 per cent expect to have less than $500,000 saved, according to a new survey by Schroders. It found 36 per cent of respondents expect to save less than $250,000 and only 24 per cent expect to save $1 million ahead of retirement. Among respondents nearing retirement age, more than half (54 per cent) said they’ll have less than $250,000 saved for retirement, while 22...

May 31, 2022
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