February 2024

U.S. public pension plans’ average funding ratio declines to 75.4% in 2023: survey

The average funding ratio for U.S. public pension plans declined to 75.4 per cent in 2023, compared to 77.8 per cent in the previous year, according to a new survey by the National Conference on Public Employee Retirement Systems. The report, which was based on responses from nearly 160 public pension funds with roughly US$2.3 trillion in combined assets under management, found the average return for plans was negative 1.9 per cent. The diminished investment returns were attributed to sharp declines...

UK. TPR urges trustees to ‘take stock’ of wider ESG factors

The Pensions Regulator (TPR) has urged pension trustees to "take stock" and think about further developing their approach to managing wider environmental social and governance (ESG) risks and opportunities. In a blog post, TPR climate and sustainability lead, Mark Hill, noted that ESG disclosure reporting requirements have expanded, suggesting that this is a trend that looks set to continue as practices around wider sustainability factors, such as nature and social, develop. Whilst Hill acknowledged that climate reporting will already be business...

The Role of AI to Enhance Retirement Savings: The Gender Gap Challenge

By Anabel Martínez Colín AI is the biggest disruptor in the financial sector, where there are many AI solutions at work, and the role of AI over it is well documented. However, the deployment of AI in the pension segment is still at an exploratory stage, and its influence on the gender gap in pensions is still unclear. This research explores the relationship between AI readiness and the gender gap in pensions (GGP), which may also be statistically significant. In addition,...

December 2023

Australia pension funds call for reforms to encourage green energy investment at home

Australian pension funds called on Friday for the government to enact reforms that would make it easier to invest in domestic renewable energy projects and warned that without action investors would opt for more compelling overseas projects. Australia's electricity transmission network, batteries and sustainable aviation fuel are three areas where simplified planning, subsidised finance and other regulatory changes could catalyse investment, according to a report released by eight major pension funds. Changes could quickly unlock A$4 billion ($2.7 billion) worth of...

Nordic pension funds invest more in UK start-ups than British counterparts

Nordic pension funds are now investing more in UK start-ups than their British counterparts, research by Atomico has found. As reported by our sister title, European Pensions, the State of European Tech report found that pension funds from Denmark, Finland, Iceland, Norway and Sweden collectively contribute USD 88m to UK start-ups, compared to USD 49m from the UK and Ireland combined. In addition, the report found that generally UK pension funds only represent 5 per cent of funds committed to venture...

November 2023

México. Jóvenes frente a un retiro incierto, ¿ahorrar o no ahorrar?

En materia económica, la tercera edad representa retos importantes: gastos ordinarios, enfermedades y pérdida de independencia. Roberto Aguilar, especialista en finanzas personales, "Ahora vivimos más años y las enfermedades crónico degenerativas o crónicas tienen un periodo más largo y eso exige que cuando nos retiremos estemos preparados para financiar esas exigencias en materia de salud". Pese a ello, la mayoría de jóvenes y adultos no ahorra para el retiro. 32 millones de mexicanos están en la informalidad, sin acceso a pensión...

Chile. Ministra Jara insiste en que para avanzar en la reforma previsional “lo que necesitamos es que la oposición ahora ceda”

“Como hemos señalado la reforma previsional más que estar sujeta a algún plazo, lo que está y ha estado, es sujeta a la capacidad de construir un acuerdo", dijo la ministra del Trabajo. La ministra del Trabajo, Jeannette Jara, reiteró que la posibilidad de avanzar en el proyecto de pensiones sigue estando en la capacidad de la oposición de flexibilizar su postura frente a la iniciativa. En específico consultada respecto de si el gobierno está dispuesto a volver a ceder respecto...

Colombia. Aumento del salario mínimo para 2024 implica reajuste en el aporte a los fondos de pensiones, en qué consiste

A partir del próximo año, quienes reciben el salario mínimo podrían tener un incremento en su contribución a los sistemas de retiro Continúa el debate por el aumento del salario mínimo para los colombianos para el 2024. Desde varios sectores se han dado cifras tentativas sobre la cifra que regirá para los más de dos millones de colombianos que ganan este promedio salarial, mientras que desde las carteras ministeriales, los sectores empresariales y las centrales de trabajo se han lanzado...

IBM unveils details of retirement benefit account

International Business Machines has provided details to employees of the company's scrapping its 401(k) corporate match and replacing it with a cash balance component called a retirement benefit account, which is part of the IBM Personal Pension Plan, a defined benefit plan. The company confirmed earlier this month that the RBA would replace the 5% match for the 401(k) plan on Jan. 1, but didn't discuss details. The IBM Personal Pension Plan — closed to new participants since 2005 and frozen...

Africa running out of time to sort looming pensions crisis

An expert at the ongoing 4th Annual Conference of the African Pension Supervisors Association (APSA) in Kampala has said urgent steps need to be taken to reverse a trend in which the continent has only 10% pension coverage of its population. Sundeep Raichura, Group Chief Executive Officer Zamara says that before African experts can talk of extending pension coverage, they must first admit it has no working pension system, in order for the leaders to focus on getting home grown...