March 2017

22Mar

UK. IFoA calls for adequacy to be ‘at the heart’ of auto-enrolment review

This could be achieved by pushing employers to reward saving over the minimum contribution rate in some way, and by introducing a method of auto-escalation, according to the institute. In addition, it recommends that the DWP consider removing the earnings trigger for when maximum contributions are payable, in order to strike a balance between the ability for those on lower incomes to save, and the risk of them losing out on tax relief and employer contributions. IFoA president, Colin Wilson, said:...

March 22, 2017
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22Mar

Mexico. Generous payments for Pemex pensioners

Some of the state oil company’s generous pensions have come to light through a freedom-of-information request, which found that 14 retired Pemex officials are receiving over 2 million pesos per year, greater than the annual salary of Mexico’s 128 Senators. The chosen few also receive over 6,000 pesos a month for expenses: gasoline, natural gas and food needs, along with year-end bonuses of close to 400,000 pesos. The top 14 retirees are paid between 238,000 to 362,000 pesos per month; in...

March 22, 2017
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22Mar

US. workers want laws to simplify saving for retirement

A new AARP survey of almost 4,000 workers ranging in age from 18 to 64 found widespread support (84 percent) for laws that make it easier to put money away for retirement. That support cuts across political lines: 89 percent of self-described liberals, 86 percent of moderates and 82 percent of conservatives agreed. Today, 55 million Americans do not have access to retirement accounts that automatically save money from their paychecks, such as employer-sponsored 401(k) accounts. Low-income workers are especially...

March 22, 2017
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22Mar

UK. Nearly one in seven workers retiring this year have made no financial provisions, study reveals

Nearly one in seven people retiring this year have made no financial provision for their retirement, and more than one in ten will be either totally or partially dependent on the state pension when they stop working, according to new research. The analysis, published by life insurance company Prudential on Wednesday, shows that thousands will enter into retirement this year with an income that is up to £1,400 a year below the Joseph Rowntree Foundation’s minimum income standard for a...

March 22, 2017
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21Mar

Future savings and pension challenges need a new system

OUR retirement savings and pension systems face unprecedented pressures. Today’s western societies operate pension systems for lives of three score years and ten and populations with lots of young people and few retirees. Those assumptions no longer apply. Indeed, we’re not even sure when workers in their 20s, 30s, or even 40s can expect to retire or if they will do so at all. Much of the UK’s problems are because the state pension system is unfunded. What’s called our “National Insurance...

March 21, 2017
News, Savings
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21Mar

U.K. Pensions Schemes Budget and more

Contents Spring Budget 2017 Qualifying recognised overseas pension schemes (QROPS) Pension flexibility - reporting of non-taxable death benefits through Real Time Information (RTI) Relief at Source Scottish rate of Income Tax Lifetime Allowance Pension scheme registrations Appendix 1 - Overseas transfer charge, pension scheme members Appendix 2 - Overseas transfer charge, overseas scheme managers Full Content: Gov UK

March 21, 2017
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21Mar

India. Bank retirees demand better pension structure in Andhra

Nearly 500 bank retirees from Vijayawada have decided to take part in a protest at Jantar Mantar in Delhi on March 23. The retired employees of Krishna district want the Indian Banks Association (IBA) to update their pension schemes and hold talks with the All India Bank Retirees Federation (AIBRF). The members of the committee accused the IBA of not implementing the Pension Regulation Act for the last 23 years. The association is also demanding revision of family pensions from...

March 21, 2017
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21Mar

Canada Pension Plan looks to raise its bet on China

China's gradual market liberalization may be good news for Canadian pensioners. Canada Pension Plan Investment Board (CPPIB), the country's largest pension fund, currently has 4 percent of its portfolio in the mainland — a figure that president and CEO Mark Machin said is too low for a globally diversified portfolio such as his. But he plans to increase that share as the world's second-largest economy opens itself up. "We want to significantly increase our investment here over the long term," he said,...

March 21, 2017
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21Mar

Teacher Pensions in Puerto Rico

You are right in identifying the underfunding of teacher pension funds in Puerto Rico as a big problem: Teachers and public employees have fulfilled their commitment to their pensions by contributing year in and year out, yet politicians failed to properly fund them and engaged in risky financial bets that made things only worse. In Puerto Rico, between 2007 and 2013, the government shortchanged the teachers’ pension plan by $2.6 billion. Government advisers then pushed deals with hedge funds and...

March 21, 2017
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20Mar

UK. New tax raid on pensions: OUTRAGE at Hammond’s plans to fill £2billion budget blackhole

After a bruising week where the Chancellor had to reverse a planned tax on the self employed from his Budget, he has identified pensions as “top of his list" to raise funds. But former pensions minister Baroness Altmann has warned that the move could have political consequences by hitting the Tory party's core vote. And Ukip has called on him to dip into the protected £12 billion aid budget to help fund care for the elderly instead of spending taxpayers' cash...

March 20, 2017
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