July 2017

20Jul

UK. State pension age to increase seven years earlier than planned

Britons born between 1970 and 1978 will have to wait an extra year, until they are 68, to claim their state pension, the government has announced. David Gauke, the work and pensions secretary, announced the controversial rise for about 7 million people in their late 30s and early 40s just before the House of Commons breaks up for its summer recess. The move implements the findings of a review by the former CBI director general John Cridland, published in March, which...

July 20, 2017
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19Jul

US. GOP again hits federal retirement in latest budget plan

The House budget proposal released Tuesday continues Republican efforts to cut federal employees’ compensation by making them pay more for retirement benefits. Saying they seek “reforms to civil service pensions to put them on a better fiscal path,” the spending plan released by the House Budget Committee calls on staffers “to make greater contributions to their own defined benefit retirement plans.” While the Republican’s “Plan for Fiscal Responsibility” did not provide details, it echoes previous proposals, including one offered by President...

July 19, 2017
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19Jul

Nigeria. Social Rights Project challenged to prove pension allegation

The Minister of Mines and Steel Development, Dr Kayode Fayemi, on Tuesday issued a seven-day ultimatum to the Social-Economic Rights Accountability Project (SERAP) to prove he still receives pensions. He said SERAP must make public details or proof of pension and any other remuneration alleged to be enjoyed by him from the Ekiti State government since leaving office as governor of the state in 2014. He said in the alternative, the SERAP should publicly apologise to him for including his name...

July 19, 2017
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19Jul

EU Commission concerned about living standards for future generations

Despite the better economic news, the risk remains that the younger generations will have less well than their parents, finds the European Commissioner for Employment and Social Affairs Marianne Thyssen. Presenting the Annual report on employment and social developments in Europe on Monday, Thyssen presented the situation on the European labor market, a decade after the outbreak of the financial crisis. EU’s labor market looks rosy again, while the unemployment rate is the lowest since December 2008 and employment has never...

July 19, 2017
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18Jul

US. Kroger to contribute $1 billion to bolster underfunded pension plan

Kroger Co. KR, -0.59% disclosed in a filing Monday that it will contribute up to $1 billion to pension plan, which it believes the "significantly" address the underfunded position of the plan. The supermarket chain said it plans to fund the contribution by issuing debt. The said certain participants' benefit balances will be distributed out of the plan, by way of a transfer to other qualified retirement plan options or a lump-sum payout. The company expects a one-time expense...

July 18, 2017
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18Jul

Ireland. Investors using their pension pots to back property investment

INVESTMENT levels in Northern Ireland's commercial property sector appear to be on the increase again after a slow start to the year, as the funding options for those seeking to invest also expand. After falling by more than a half to £213 million across 2016, the latest market forecasts suggest that figure could be surpassed in the third quarter of this year alone, with over £200m worth of deals that are currently being negotiated expected to complete over the summer...

July 18, 2017
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18Jul

US. Microsoft raises 401k contribution matching to help retain employees

Advisors say that to retire, employees should save up to 15% of their salaries each year. With a program like the 401k setup, workers are encouraged to put pre-tax money into the savings with an optional contribution from their employers for a long term solution. However, some have been unhappy with the results. The 401k plan that many employers offer to its workers has been undergoing a shift in the last year. During 2016, many companies have been adjusting how...

July 18, 2017
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18Jul

Chart of the Week: A Golden Aging for Vietnam?

Vietnam’s demographic dividend is fast turning into a handicap. For decades, working-age Vietnamese made up an expanding share of the population, boosting economic growth and helping to keep retirement and health spending in check. That changed in 2013. While the southeast Asian nation’s population of 92 million is still relatively young (the median age is 26), it is graying quickly. Birth rates are falling, and life expectancy is rising. This phenomenon is by no means unique to Vietnam. The problem is...

July 18, 2017
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17Jul

Frank Field accuses the UK pensions regulator of having its priorities the wrong way round

The UK's pensions watchdog must put workers’ interests ahead of those of shareholders, the chair of the work and pensions select committee urged today. Frank Field, who has been re-elected as the chair of the influential work and pensions select committee, hit out of the Pensions Regulator (TPR). He told City A.M. a failure to disclose names of the firms it was monitoring was “a marvellous way of covering inaction”. On Thursday the government revealed plans to provide the TPR with...

July 17, 2017
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17Jul

US. Millennials don’t save for enough retirement — but Congress can help

“Young people are not saving enough.” “They will have to double their savings to retire at a reasonable age.” These quotes represent the conventional wisdom about our nation’s millennials, the more than 80 million Americans between the ages of 20 and 36. However, the savings picture for millennials has become more complex, according to recent data. This cohort of young people is saving more, though for short-term goals instead of retirement. To promote retirement savings, Congress should pass the Automatic Individual Retirement...

July 17, 2017
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