January 2022
04Jan

South Africa. Allowing withdrawals from pension funds to increase retirement savings

To allow limited withdrawals from pension funds will actually help people to save more for their retirement, according to a study by National Treasury. The research found that people sometimes resign from their jobs for the sole reason of accessing their pension fund in emergencies, and end up spending everything. The proposal to split retirement funds into two ‘pots’ and give people access to withdraw from one is expected to solve the problem. Treasury recently published more information on this and...

January 4, 2022
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October 2021
29Oct

How Chile’s Pension System Became a Covid Piggy Bank

Chile’s love-it-or-loathe it private pension system has long served as a pillar of the nation’s capital markets. Since the pandemic hit, it’s been serving another role, that of national piggy bank. Congress has passed three bills allowing savers to withdrawal billions of dollars. It’s now considering a fourth drawdown, a move that is worrying investors, pulling both the finance ministry and the central bank into the fray. The proposal is also spurring fresh political debate ahead of November’s presidential...

October 29, 2021
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27Oct

Chile’s Fourth Run on Pension Funds Heads to Senate After Committee Approval

Chile’s Senate Constitution Committee approved a proposal for a fourth round of early pension withdrawals that would pump as much as $20 billion into one of the world’s fastest-growing economies. Read also How Chile’s Pension System Became a Covid Piggy Bank The committee voted 3 to 2 in favor of legislation on Tuesday despite growing opposition to the measure. The bill now moves to the Senate floor, where it faces difficult odds of passing. Read also Olivia Mitchell: “La persistente falta de...

October 27, 2021
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September 2021
29Sep

Chilean bill to allow for fourth pension withdrawal advances in Congress

Chile's lower congressional chamber on Tuesday approved a bill that would allow citizens to make a fourth withdrawal from their pension funds, and sent it to the Senate for a vote, despite opposition from the government. The initiative passed with 94 votes in favor, just one more than the minimum needed, while 39 lawmakers voted against and 9 abstained. Chile's government and the Central Bank have warned that passing the bill would negatively affect the economy, as Chileans further deplete funds...

September 29, 2021
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20Sep

UK. Dipping into pension could cost savers their benefits

People using pension freedoms to dip into their retirement pot at 55 could end up losing their benefits, Sir Steve Webb, partner at LCP and former pensions minister, has warned. According to Webb, as furlough schemes finish and the additional £20 on universal credit payments comes to an end, people who are over 55 and still working might become concerned about their jobs or might find themselves made redundant. This could put a strain on people's finances, and lead to them...

September 20, 2021
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08Sep

Pension withdrawals by departing Hong Kong residents hit $270 mln in second quarter

Residents leaving Hong Kong withdrew HK$2.095 billion ($270 million) from Mandatory Provident Fund (MPF) pension accounts in the second quarter, up 111.6% from the same period in 2020. A sweeping security law imposed on Hong Kong in June 2020, aimed at anything Beijing regards as subversion, secession or terrorism, prompted residents of the city to move tens of billions of dollars to other countries including Canada, where thousands hope to forge a new future. read more A total of 8,000 claims...

September 8, 2021
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August 2021
30Aug

Plan for early pension access in South Africa could do more harm than good, authorities warn

Financial authorities have warned that the proposed Pensions Funds Amendment Bill could have a harmful impact on financial savings in South Africa. The bill, which was tabled by the opposition Democratic Alliance, will allow retirement fund members to access a portion of their savings in cash before retirement as a guarantee for a loan. The bill makes provision for this by amending the current Pension Funds Act to allow pension fund members to obtain a loan, secured by a guarantee from...

August 30, 2021
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16Aug

Warning over major retirement change for South Africa

National Treasury has published further details around a new retirement system proposed for South Africa that will allow people to access a portion of their savings early in times of a financial emergency. Treasury has described it as a ‘two-bucket’ system: The first bucket for longer-term financial security – Members must preserve their contributions and the compounded growth invested. They will not have access to this portion of their funds until they retire. The second bucket for short-term financial relief – Members...

August 16, 2021
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11Aug

US. Pandemic Puts Secure Retirement at Greater Risk for Many

The COVID-19 pandemic has had an outsize effect on people 50 and older: Not only did it impact older adults’ health more severely than younger ones, but it also forced many into early retirement and prompted others to take withdrawals from their savings earlier than they had planned. "The prospects of a secure retirement for millions of workers will be even more precarious following the pandemic, and more Americans of all ages will need to rely even more on Social...

August 11, 2021
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06Aug

Uganda allows early, partial pension withdrawals to cushion economy

Uganda's President Yoweri Museveni has agreed to legislation allowing some workers early access to 20% of their savings held by the state pension fund, to help them absorb the economic blow from the COVID-19 pandemic, he said. Consumers in the East African nation have been hit hard by the impact of the pandemic, forcing some of them to demand that the legislature allows them to access part of their retirement savings. Read also 1 in 3 Singaporeans are worried about retirement...

August 6, 2021
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