By Research and Markets In 2019, UK pension funds received total contributions of £241 billion, representing a 10% rise over the level of 2018. In 2019, contributions to workplace pensions represented 70% of total contributions and this is expected to rise to 71% in 2020. In 2019, the publisher estimates that 2.4 million new pension products were sold to members of the public. In 2019, just over 21 million employees in the UK had a workplace pension with most of...
The world’s worst-performing stock market this year is at risk of an even steeper drop from a proposal to let Colombians tap pension savings during the coronavirus crisis. The government has held talks with private pension funds regarding an “important proposal” that would allow workers to draw down their retirement accounts, Finance Minister Alberto Carrasquilla told lawmakers Wednesday. The government has made “advances” on the issue, though hasn’t reached a decision, Carrasquilla said. The plan would likely need congressional...
The global economy will contract at least six percent this year, with the unprecedented loss of income and "extraordinary uncertainty" caused by measures to contain the coronavirus outbreak, the OECD said Wednesday. Read also Virus Exposes ‘Systemic Risk’ in Australia Pensions Industry In the case of a second wave of contagion later in the year, economic output could shrink by as much as 7.6%, it warned. In both scenarios, recovery will be "slow and uncertain". Read also World’s Worst Stock...
By Mario Arturo Ruiz Estrada, Evangelos Koutronas Purpose – The purpose of this paper is to explore the concept of pensionomics as a prospective tool for pension evaluation. This paper suggests a paradigm shift – a multi-disciplinary synthesis of differing perspectives in evaluating pension’s overall performance based on past work on pension evaluation – incorporating non-economic variables with significant impact on economic growth and social development. Design/methodology/approach – This paper suggests a new analytical tool called “Pensions Consistency (PC)...
The weak financial condition of seven US public pension plans threatens to deplete their assets by 2028, leading to severe risks for the living standards of thousands of American employees and retired workers. Many US public pension plans had not fully recovered from the 2007/08 financial crisis before coronavirus struck, triggering turmoil across financial markets. The correction in the US stock market has increased the long-term structural problems across the entire US public pension system, particularly for the weakest...
The Allianz Group has put Nigeria in the 64th position in the global ranking of pension development, highlighting the need for further pension reforms in the country. The first edition of the group’s pension report, titled ‘Allianz Global Pension Report 2020: Ready or not’, analysed different country’s pension systems with its proprietary pension indicator, called Allianz Pension Indicator. The API examined the pension systems in terms of sustainability and adequacy of 70 countries to provide a comprehensive view of the...
Allianz recently unveiled the first edition of its Global Pension Report, which analyses pension systems from countries around the world using Allianz's very own pension indicator - the Allianz Pension Indicator (API). The indicator follows a simple logic: it begins with an analysis of demographic and fiscal preconditions, after which it looks at national pension systems based on two crucial dimensions: sustainability and suitability. It is therefore based on three pillars and takes into account a total of thirty...
Transaction costs make up an average of 37 per cent of the total costs relating to pension scheme investments, data from CACEIS has revealed. This makes transaction costs the second largest outlay in scheme investments, after management costs which make up 42 per cent of total investment costs. The proportion of investment expenses made up by transaction costs has increased from CACEIS’ previously reported figure of 25 per cent. CACEIS said this is in part due to new methodology...
Will COVID-19 usher in a 'new normal' in pensions? Or will it accelerate trends that were already evident before the crisis? Some sectors and industries will see entirely new ways of working. This is unlikely to apply in pensions. Instead, our view is that the COVID-19 crisis will lead to an 'accelerated normal'. In other words, COVID-19 will not be midwife for the birth of new trends in the world of pensions. Instead, it will be a catalyst accelerating...
The coronavirus crisis has triggered an historical drop in the number of state pensions paid out in Spain in May, in part because of two months of high mortality caused by coronavirus. Read also The Game of Pension Risk Transfers Continues Some 9,754,137 contributory pensions were paid out in May, 38,508 fewer benefits than were paid out in April.The fall has triggered an unprecedented drop in Spain’s monthly pension bill. In May, it fell by 0.3% to 9.8 billion...
