April 2024
17Apr

UK pension schemes and insurers boost sustainable investments

95% of UK pension funds and insurers in a survey said they expect to increase allocations to renewable energy assets over the next five years. According to the survey commissioned by AlphaReal, a specialist manager of secure income real assets, 35% of respondents said they will increase allocations by up to 10%. About 44% said they will raise allocations by between 10% and 20%, while 16% will boost by more than 20%. The remainder of respondents said there will be no...

April 17, 2024
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17Apr

How The US Economy Avoids The Longevity Trap

By Anthony Roth   The anticipated increase in the proportion of the American population aged 65 and older—from 58 million in 2022 to a projected 82 million by 2050—calls attention to the economic implications of increased longevity. Yes, this trend will bring significant challenges to continued economic growth. Fortunately, I believe the U.S. is uniquely positioned to overcome these challenges and capitalize on the economic opportunities related to longevity. Strength In Aging A key to any discussion of the increasing age of our population should also...

April 17, 2024
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17Apr

Greece. Viable social security system, but only on low pensions

The sustainability of the social security system is considered assured until the distant 2070, according to a new study by the National Actuarial Authority submitted to the competent department of the European Commission. There is, of course, a very important and highly mandatory condition: That nothing changes in terms of the so-called “parametric changes,” i.e. retirement age limits, amount and method of calculating benefits, etc. And, of course, an equally disappointing finding, that Greece has a sustainable system, but insufficient...

April 17, 2024
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17Apr

US. Inflation Concerns Still Impacting Retirement Planning Decisions

Ongoing economic challenges are changing how Americans are thinking about retirement planning, with nearly 6 in 10 pre-retirees (57%) believing that inflation poses the most immediate challenge to their retirement portfolios over the next 12 months. And this stress apparently is shifting the perception of life as a retiree, especially for those closest to retirement age. Findings from Nationwide's ninth annual Advisor Authority survey show that roughly 7 in 10 pre-retiree investors (69%)—defined as non-retired investors aged 55-65—agree that the norm...

April 17, 2024
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16Apr

US. Why Staying in Your 401(k) After Retirement Makes Sense

Many Americans heading into retirement confront a weighty question that doesn’t have an easy answer: Should they retain their savings in their 401(k) plans, move them to an Individual Retirement Account (IRA), or cash out and pay taxes (and perhaps penalties) on the assets withdrawn?A new research paper titled “The Pros and Cons of Remaining in a 401(k) Plan After Retirement” addresses this question, especially for “the vast majority of Americans who enter retirement with low or moderate levels...

April 16, 2024
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16Apr

UK. Wave of retirement is starving UK stocks of pension fund investment, warns Goldman Sachs

British businesses risk being starved of investment as pension funds sell off assets to meet a wave of retirement claims, Goldman Sachs has warned. Analysts at the Wall Street bank have sounded the alarm over investment levels flatlining in the UK after research found final salary schemes are selling almost as many British stocks as other pension funds are buying. This has meant that UK-listed companies are receiving just £500m in net investment from pension funds each year. Goldman Sachs said defined...

April 16, 2024
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16Apr

Americans think they need almost $1.5 million to retire. Experts say to focus on another number instead

When it comes to retirement, Americans have a new number in mind — $1.46 million — for how much they think they will need to live comfortably, according to new research from Northwestern Mutual. That estimate is up 53% since 2020, when Americans said they would need $951,000, as the cost of living has surged in recent years. It is also up 15% from last year, when respondents said they would need $1.27 million. For many savers, that goal may sound daunting, particularly as...

April 16, 2024
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16Apr

South Africa. The system is offline — Government pension fund goes silent after data breach

The Government Employees Pension Fund’s (GEPF) systems are still down following a data breach from the LockBit ransomware group in mid-February 2024. As a result, government employees cannot log into the GEPF website or its smartphone app, leaving them in the dark about the latest value of their pensions. Several readers have informed MyBroadband of the issues experienced when attempting to access the system in recent weeks. “We are still not able to log into the GEPF website and the cell phone...

April 16, 2024
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15Apr

US. CWA Union Fights Back Against So-Called Pension De-Risking

Before its bankruptcy in 1991, Executive Life Insurance Company accepted transfer contracts from companies to pay their retirees’ pensions instead of the companies defined benefit pension plan. Employers saved money in the transfer because Executive Life offered high interest rates — which were discovered later to be backed by junk bonds – and because their retirees lost Pension Benefit Guaranty Corporation (PBGC) protection when the companies stopped paying PBGC premiums. Retirees from RJ Reynolds, Pacific Lumber suffered significant cuts in pensions...

April 15, 2024
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15Apr

Why richer, older China needs changes to its social contract

No one likes getting old. The pains and strains of becoming elderly wear on us. The worries about how to ensure we can provide for ourselves in old age looms largest of all, as countries’ birth rates fall Nowhere feels this more acutely than China, where a staggering 300 million peopleminimal or no pensionsmaller families The challenges are multifaceted. The government needs to build out rather than restrict the social safety net of pensions and healthcare for this growing segment of the country’s...

April 15, 2024
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