November 2024

How are countries responding to the ageing workforce challenge?

An ageing population is an irreversible global trend, and it risks posing serious challenges over the next few decades. Pension systems, designed when populations were younger and life expectancy shorter, are now under immense pressure. To mitigate the impact of an ageing population, governments around the world are starting to implement a raft of measures. While there is no one-size-fits-all solution, nations are amending pension laws and updating regulations to adapt to the changing demographics. Let’s delve into the details...

Romania’s Govt. announces 12.1% hike in pensions as of January

Pensions in Romania will increase with the hike in the reference point value (VPR), rising by 12.1%  from RON 81 currently to RON 91 after January 1, 2025, the Ministry of Labor announced on November 20 on its Facebook page. "The 12.1% increase in the VPR is above the inflation rate.  The new Pension Law is a firm guarantee that every pensioner will benefit from a sustainable increase in income," said the minister of labor and social solidarity, Simona Bucura Oprescu,...

México. Los retos fiscales de las pensiones

De los 9.3 billones de pesos de gasto neto total propuesto por el Ejecutivo federal para 2025, el pago de pensiones contributivas y no contributivas, incluida la pensión para adultos mayores, representa en conjunto una erogación programada de prácticamente 2.2 billones de pesos. Esto quiere decir que, de ser aprobado el Proyecto de Presupuesto de Egresos de la Federación (PPEF), el 23.3 por ciento del gasto neto total se destinará a cubrir las pensiones. Dicho de otra manera, 23 pesos...

Panamá. Privilegios en la Fuerza Pública: $541 millones en jubilaciones especiales acumuladas

En medio de la discusión sobre las reformas al sistema de jubilaciones de la Caja de Seguro Social (CSS), las pensiones de la Fuerza Pública del país están bajo la lupa debido a los privilegios que encarnan. Según cifras del Ministerio de Seguridad Pública (Minseg), los oficiales retirados ya han consumido el 93.29% del presupuesto asignado para jubilaciones en 2024, que asciende a $111.3 millones. Hasta la fecha, el desembolso alcanza los $103.8 millones. Una jubilación con historia y beneficios especiales Irving...

Argentina. Solo una de cada 5 pensiones es otorgada en pleno cumplimiento de edad, aportes u otro requisito.

Se generó una gran polémica por la cancelación de la jubilación como expresidenta y pensión por viudez de un expresidente de Cristina Kirchner debido a su condena judicial por corrupción. Lo mismo ocurrió con la jubilación como exvicepresidente de Amado Boudou. Mucha gente opina a favor de esta decisión toda vez que se entiende que las jubilaciones otorgadas a expresidentes y vicepresidentes y las pensiones por viudez derivadas a sus cónyuges son consideradas de privilegio. Privilegio significa que son otorgadas sin cumplimiento de alguno...

UK. Hopes and fears for pensions in 2025

Improvements in defined benefit (DB) pension scheme funding mean that, for many, the ‘endgame’ for the pension scheme now feels tangible, instead of a distant ambition. However, the advent of the new funding regime will overlay a new discipline. With defined contribution (DC) schemes, questions around adequacy remain uppermost for members, while the absence of a timetable for the extension of auto-enrolment minimum contributions continues to be a concern.” The challenge of retirement adequacy We now know that Employer National Insurance...

Are You One of 38 Million Seniors Who Fear Your Retirement Income Won’t Be Enough? You’re Not Alone.

Social Security is one of the most crucial functions of the U.S. government. Last year, the program paid roughly $1.5 trillion to 68 million Americans, 51 million of whom were retired. Many of these retired Americans rely on the program for a significant portion of their incomes. Originally intended as one of three income sources for retirees along with employer pensions and personal savings, Social Security's role has grown as pensions have become rare for most. Many lower-income earners are unable...

UK. Aviva completes a £1.7 billion buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme

Aviva has today announced the completion of a £1.7 billion pensioner buy-in with the National Grid Electricity Group (“the Group”) of the Electricity Supply Pension Scheme (“the Scheme”). The transaction, which completed in October 2024, included transitioning the Group’s existing longevity swap with Zurich Assurance Ltd to Aviva, and insures the benefits for 5,800 pensioner members of the Group. Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by...

India. 80,000 more people to get old-age pension in Delhi: Kejriwal

AAP supremo Arvind Kejriwal on Monday said an additional 80,000 people are now eligible for old-age pension in Delhi, raising the total number of such beneficiaries to 5.3 lakh. Kejriwal said at a press conference that the Delhi government is committed to social welfare and highlighted that the decision to pay old-age pension to more people is being implemented following Cabinet approval on Sunday. On Sunday, the Delhi government launched a portal for the elderly to apply for pensions. It has...

Pensions reform is vital to raise the UK’s dismal savings rate

No area of policymaking suffers more from “muddling through” than pensions. Pension arrangements shape national prosperity and individual security over multiple generations. “Long-termism” is the only sane approach. Yet what the UK has done is, alas, the opposite. As I noted in a column published in June 2023, this short-sightedness ended up by putting people working in the private sector into one of two “corners”. In one corner are defined benefit schemes, which offer guaranteed pensions, with investment and longevity...