October 2019

07Oct

China’s Ministry of Finance transfers more assets to boost pension system

China’s Ministry of Finance is continuing its efforts to boost the country’s creaking pension system by transferring its stakes in financial state-owned enterprises (SOEs) to the social security fund, reported Caixin. Hong Kong- and Shanghai-listed Bank of Communications Co. Ltd., one of China’s five largest state-owned banks by assets, announced that the finance ministry will transfer 10% of its shares in the bank to the government-backed National Council for Social Security Fund. The shares were worth RMB 10.7 billion...

October 7, 2019
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07Oct

UK. The Guardian view on women’s pensions: a feminist issue

Some means must be found to ease the hardship faced by the 1950s-born women worst affected by pension age changes. Last week the high court rejected the arguments in a judicial review brought by the campaign group BackTo60. The group argued that changes to the law in 1995 and 2011 were discriminatory on grounds of sex and age, and that 3.8 million women should be compensated. But while last Thursday’s loss was a setback, the campaign is far from...

October 7, 2019
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07Oct

Norway’s largest pension fund KLP exits oil sands companies

KLP, Norway’s largest pension fund, will no longer invest in companies deriving their income from oil sands, and recently sold stocks and bonds in such firms worth about $58 million, it said on Monday. Oil sands have been a focal point of environmental groups’ global efforts to stifle energy production from fossil fuels, saying they take an especially large toll on the environment. KLP’s decision affects five companies, which were added to its exclusion list: Canada’s Cenovus Energy, Suncor...

October 7, 2019
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07Oct

Zimbabwe. Pensioners to get express cash

The Government is working with the Reserve Bank of Zimbabwe and banks to ensure that pensioners access cash for their pension payouts. The country has been experiencing cash shortages that have seen members of the public literally camping at banking institutions who are failing to satisfy their clients. The hardest hit, however, are pensioners, with some now being forced to sleep on bank pavements for more than a night in anticipation of cash. Minister of Public Service, Labour ...

October 7, 2019
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07Oct

South Africa. Prescribed assets would upset the rationale for pension funds

One of the main criticisms of prescribed assets is that forcing pension funds into these investments would hurt individual savers. Besides the market distortions that prescribed assets would create, everyone understands that they would deliver below market returns. Under South Africa’s previous dalliance with prescribed assets, this impact was primarily felt by employers. This is because pension funds back then were run in a different way – they were all based on defined benefits. This meant each member did...

October 7, 2019
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07Oct

US. Impeachment And Your Retirement

Here’s why they are related The financial advice industry is known for having strong opinions. Politics is like that too. Especially these days. To be clear, this is NOT a political commentary. I direct you to a zillion other locations on the internet for that. Likewise, it seems to me that people within 10 years either side of retirement (hoping to retire within 10 years or retired within the last 10 years) are bombarded with...

October 7, 2019
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04Oct

Pension Insurance Market Size 2019: Demand, Type, Applications, Share, Global Growth Opportunities, Potential, Trends & Industry Forecast to 2026

By Morris Beck Global Pension Insurance Market Status & Trend Report 2013-2023 Top 20 Countries Data offers a comprehensive analysis on Pension Insurance industry, standing on the reader’s perspective, delivering detailed market data in Global major 20 countries and penetrating insights. No matter the client is industry insider, potential entrant or investor, the report will provides useful data and information. The report segments the Global Pension Insurance market as: Global Pension Insurance Market: Type Segment Analysis (Consumption Volume, Average Price,...

October 4, 2019
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04Oct

Retirement Policy and Annuity Market Equilibria: Evidence from Chile

By Gaston Illanes, Manisha Padi Retirement policy has indirect effects on its beneficiaries, through the “crowd-out” or “crowd-in” of insurance markets. We study how retirement policy in Chile, which limits the drawdown of retirement assets but otherwise does not provide or require fixed income in retirement, results in more than 60% of eligible retirees purchasing private annuities at low prices. We estimate a demand model to show that replacing this voluntary policy with partial mandatory annuitization and removing limits...

October 4, 2019
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04Oct

Computer As Confidant: Digital Investment Advice and the Fiduciary Standard

By Nicole G. Iannarone Digital investment advisers are the fastest growing segment of financial technology (fintech) and are disrupting traditional investment advisory delivery models. The computer-led investment advisory service model may be growing particularly quickly due to a confluence of social and political factors. Politicians and regulators have increasingly focused on the standards of care applicable to investment advice providers. Fewer Americans are ready for retirement and many lack access to affordable investment advice. At the same time, comfort...

October 4, 2019
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04Oct

Defined Benefit Pension De-Risking and Corporate Investment Policy

By Brian Silverstein U.S. corporate sponsors of defined benefit pension plans in recent years have been de-risking by paying premiums to transfer their pension plan assets and liabilities to the balance sheets of third party insurers. The passage of the Moving Ahead for Progress in the 21st Century Act (MAP-21) in 2012 provided the pension funding relief necessary to make de-risking a mainstream corporate activity. This study provides the first empirical analysis of plan and firm factors that cause...

October 4, 2019
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