July 2021
16Jul

Private Retirement Systems and Sustainability: Insights from Australia, the UK, and the US

By Nathan Fabian, Mikael Homanen, Nikolaj Pedersen & Morgan Slebos Retirement system sustainability is defined as the ability of plan boards and managers to be responsible investors, active stewards, and allocators of capital to economic activities with desirable social and environmental outcomes. In this paper, we examine the policy frameworks and important structural variables pertinent to private retirement systems in Australia, the UK, and the US. By analyzing various reports, interviewing experts, and using data from the Principles of Responsible...

July 16, 2021
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16Jul

Further Proof that Auto-Enrollment is Key to Saving Earlier for Retirement

If you automatically enroll them, they will save… sooner. A new survey has found the vast majority (84%) of workers that were automatically enrolled in their workplace retirement plan say they started to save for retirement sooner than if they had to take action to make the enrollment decision on their own. Read also US. Biden’s Pension Rescue Seen as Bigger Help for Corporate Bonds However, only one-third of employers currently offer automatic enrollment, and among those that do, just 21% have...

July 16, 2021
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15Jul

U.K. corporate pension fund surplus gains again in June

The total surplus of U.K. defined benefit funds covered by the Pension Protection Fund’s 7800 index increased 4.7% in June to £99 billion ($137 billion). The surplus was £94.6 billion at the end of May. A year earlier, U.K. corporate DB funds recorded a total deficit of £132.2 billion, the London-based PPF said Tuesday in an update. The PPF is the lifeboat fund for defined benefit plans of insolvent U.K. companies. The funding ratio increased to 105.8% as of June 30, up...

July 15, 2021
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14Jul

Green pension 21x more effective than common climate change efforts

UK savers have been urged to make their pension green after research revealed that this was a “staggering” 21 times more effective at cutting carbon footprints than stopping flying, becoming a vegetarian and moving to a renewable energy provider combined. Read also Is there really an ESG bubble? The analysis, from Make My Money Matter (MMMM), Aviva, and Route2, found that those with an average sized pension pot of £30,000 who moved from a traditional fund to a sustainable option can...

July 14, 2021
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13Jul

UK. Women expected to be hit hardest if triple lock scrapped

Women will be hit the hardest if the government scraps the triple lock on the state pension, as they are almost twice as likely to rely on the benefit, according to Barnett Waddingham (BW). Research from the firm showed that 30 per cent of women do not have any private or workplace pensions, and were therefore likely receive a state pension only at retirement, while 17 per cent of men were in the same position. BW’s survey results showed that this...

July 13, 2021
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09Jul

UK. Chancellor Rishi Sunak hints at ruling out 8% pension rise

The chancellor has given his strongest indication yet of ruling out a predicted 8% rise in the state pension next year. Official forecasts suggest that the link with earnings growth could mean the bumper rise in the amount paid from April 2022. Rishi Sunak told the BBC a decision on pensions would be "based on fairness for pensioners and for taxpayers". Various commentators have called for an overhaul of the rules. However, groups representing older people say the government's promises to pensioners should...

July 9, 2021
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07Jul

UK. State pension predicted to rise by 8%

Predictions suggest that the link with earnings growth could mean an 8% rise in the amount paid from April 2022. That would cost the government £3bn more than previously expected, according to the Office for Budget Responsibility (OBR). Read also UK. Chancellor Rishi Sunak hints at ruling out 8% pension rise But UK state pensions remain less generous than much of Europe, and are vital for millions of people. Read also UK. Nearly a third of Gen Xers have inadequate pension savings At present: The...

July 7, 2021
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06Jul

UK. Nearly a third of Gen Xers have inadequate pension savings

Almost one in three Generation Xers — individuals aged between 41 and 56 — have inadequate pension savings and face a minimum-at-best standard of living in retirement, according to research by the International Longevity Centre and Standard Life. The ILC’s ‘Slipping between the cracks’ report found that 60 per cent of Gen Xers in a defined contribution scheme are not contributing enough for financial security or flexibility later in life, while 59 per cent of those with insufficient savings lack...

July 6, 2021
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02Jul

What would women’s pensions look like if there wasn’t a gender pay gap? The economic case for gender-inclusive, paid parental leave

By Pension Bee PensionBee’s vision is a world where everyone can look forward to a happy retirement. For this to happen, we all need good health, financial freedom, and social inclusion. Currently, an obstacle to achieving this financial freedom for all is a gender pension gap of up to almost 60%. Bold action is required to challenge this so that women can enjoy similar levels of wealth in retirement as men. This is particularly important as women tend to live longer...

July 2, 2021
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02Jul

UK. Women’s pensions ‘would gain over £106k on average’ if new fathers did half of unpaid care work, report finds

Women are losing out on over £100,000 in their pension pots on average due to men not taking on an equal share of unpaid care work in the early years of child-rearing, a new report has found. Read also UK. Half of millennials want cryptocurrencies in pensions The "gender pension gap" is a known issue. Women are more likely to be left in poverty on retirement because they typically work fewer hours due to caring responsibilities from their late twenties onwards,...

July 2, 2021
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