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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July 2021
30Jul

Mboweni pushing for major retirement change in South Africa

Finance minister Tito Mboweni wants a key regulatory change that will allow South Africans to access their retirement funds early. The finance minister said in a media briefing on Wednesday (28 July), that the change will be made with the proviso that workers use any funds in a responsible manner. He said that workers should be able to access a portion of their retirement funds during ‘difficult times’ – whether it be for a bond repayment or to pay off debt. “A...

July 30, 2021
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28Jul

Chileans tapped into pensions to survive the pandemic – now what?

Chile’s celebrated $200bn private pensions system, based on individual capital accounts, has served as a model for dozens of emerging markets since it was established 40 years ago during the military dictatorship of Augusto Pinochet. The system was trailblazing: Chile was the first country to eschew a government-backed pension system and replace it with mandatory private retirement savings. Read also Latin America. What Comes After the Commodity Super Cycle and the Pandemic? Policies to Tackle Poverty and Inequality in Latin America Over...

July 28, 2021
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22Jul

Canada. 27% of homeowners planning to access pension early despite adequacy fears

Nearly a third (31 per cent) of homeowners over 40 plan to work beyond state pension age due to concerns over affordability and financial insecurity, whilst over a quarter (27 per cent) plan to access their pensions early, according to research from Canada Life. The survey found that many older savers had fears around funding their retirement, with close to a third (31 per cent) of homeowners over 40 who are currently working stating that they cannot afford to retire...

July 22, 2021
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June 2021
08Jun

Hong Kong’s departing residents withdrew $248.9 million in pension funds in Q1

Hong Kong residents leaving the city for good withdrew a total of HK$1.931 billion ($248.92 million) from their Mandatory Provident Fund (MPF) pension accounts in the first quarter of 2021, up 49.1% from the same period a year earlier. A total of 7,700 claims were made during the first quarter. That compared with 7,600 claims during the same period in 2020, when HK$1.295 billion was withdrawn, data from the Mandatory Provident Fund Schemes Authority released late on Monday showed. (https://bit.ly/3geyWKC). Read...

June 8, 2021
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May 2021
14May

Chileans drain $10 bln more from pension funds as pandemic drives withdrawals

Chileans flocked for a third time to withdraw money from their retirement funds this week, draining nearly $10 billion from the country’s privatized pension system in a move some billed as a lifeline amid a fierce second wave of the coronavirus pandemic. Read also Chicago Boys’ Free-Market Pension Model Is Unraveling in Chile Chile’s Congress in late April approved a bill allowing citizens a third opportunity to withdraw 10% of savings held in privately held pension funds. Many Chileans have already...

May 14, 2021
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04May

Pension changes for South Africa under the spotlight

Parliament’s Standing Committee on Finance has invited interested parties to submit written submissions on the Pensions Funds Amendment Bill. Introduced by the opposition Democratic Alliance, the bill aims to amend the Pension Funds Act to allow pension fund members to access a portion of their fund before retirement as a guarantee for a loan. The DA has described the draft bill as crucial in the fight for ‘people power over state power’ in South Africa. “Individuals should be free to choose, in...

May 4, 2021
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