June 2020
11Jun

9.5 Million Americans Are Raiding Retirement Accounts Amid Covid-19

The Covid-19 pandemic has crippled economies all around the world. From healthcare disasters to black swan financial events, it has been quite some time since the future has seemed so bleak. According to a story originally published by CNBC, this widespread financial strife has caused more than one in four Americans to raid their retirement savings. Read also US. The Reason COVID-19 Might Destroy 22% of Workers’ Retirement Although withdrawing from retirement plans during a financial emergency may seem like...

June 11, 2020
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11Jun

Virus Exposes ‘Systemic Risk’ in Australia Pensions Industry

The coronavirus crisis has exposed structural weaknesses in Australia’s retirement savings system and shown the urgent need for the pensions industry to consolidate, according to the government. Senator Jane Hume, the assistant minister for superannuation and financial services, said the pandemic had highlighted the heavy concentration of some funds, whose membership is drawn from industries such as tourism, retail or hospitality. That left them vulnerable to the widespread layoffs impacting those sectors. “It’s a systemic risk and it’s been...

June 11, 2020
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11Jun

Colombia may allow partial withdrawals from pensions during crisis

Colombia’s government could allow people to make partial withdrawals from their pension funds during the economic crisis caused by measures to halt the spread of coronavirus, finance minister Alberto Carrasquilla said on Wednesday. Read also World’s Worst Stock Market Risks More Pain From Pension Selling As of the end of March, pension funds in the country held some 281 trillion pesos ($77.13 billion) in compulsory and voluntary pensions, according to industry association Asofondos. Read also Supreme Court Clears Bankruptcy Restructuring...

June 11, 2020
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10Jun

U.K. deficits rise as coronavirus continues to hit markets

The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index worsened 37% in May to £176.3 billion ($217.6 billion). The deficit was £128.5 billion as of April 30. The deficit of U.K. defined benefit funds also deteriorated over the year ended May 31, from £38.1 billion as of May 31, 2019, London-based PPF said Tuesday in an update. Read also UK. Regulator repeats anti-scam warning as £5m lost to fraud The funding ratio of...

June 10, 2020
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09Jun

Bahamas. ‘Baffled’ Over Failure To Reform Public Pensions

The Chamber of Commerce's chief executive says he is "baffled" at the government's failure to reform public sector pensions by making civil servants contribute towards their own retirement costs. Jeffrey Beckles, speaking on a webinar hosted by the Chartered Financial Analyst (CFA) Society of The Bahamas, said: "I can't find a model in the world that has been using the same system where it has proven successful or profitable, and I don't know what causes us to feel that...

June 9, 2020
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08Jun

A “New Deal” for Informal Workers in Asia

By Era Dabla-Norris, Changyong Rhee Full or partial lockdowns to curb the spread of COVID-19 are having crippling effects on businesses and workers across Asia, as elsewhere. Among the most vulnerable of the workers are the ones working in part-time and temporary jobs without social insurance, and in sectors of the economy that are neither taxed, nor regulated by any form of government. Known as informal workers, they are particularly vulnerable to dramatic collapses of income and loss...

June 8, 2020
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08Jun

Building better retirement systems in the wake of the global pandemic

By Olivia S. Mitchell In the wake of the global pandemic known as COVID-19, retirees, along with those hoping to retire someday, have been shocked into a new awareness of the need for better risk management tools to handle longevity and aging. This paper offers an assessment of the status quo prior to the spread of the coronavirus, evaluates how retirement systems are faring in the wake of the shock. Next we examine insurance and financial market products that...

June 8, 2020
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08Jun

US. The Reason COVID-19 Might Destroy 22% of Workers’ Retirement

Ever since U.S. cases of COVID-19 started multiplying back in March, the economy has been in shambles. Millions of workers have lost their jobs, while countless small businesses have closed their doors, perhaps forever. With so many people desperate for money, it's clear that a relief package was necessary, and so in March, lawmakers passed the CARES Act. Perhaps the most popular feature of the CARES Act was the $1,200 stimulus payment it produced, but another notable feature is...

June 8, 2020
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08Jun

UK. Regulator repeats anti-scam warning as £5m lost to fraud

The Pensions Regulator has repeated its warning about scams after a report showed more than £5m has been lost to fraud since February. According to research carried out by Action Fraud the number of fraud cases total more than 2,100 in the past five months, with losses to fraudulent activity amounting to £5,142,265. Pension scams were amongst the most common type of fraud with fraudsters tricking victims into transferring their pension pots to criminals or releasing funds. Commenting on...

June 8, 2020
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05Jun

Chile’s pension system is changing for the worse

Chile’s Minister of Finance, Ignacio Briones, gave instructions for changes to laws 18.045 and 18.046, which were originally meant to give more transparency and responsibility to AFP administrators, in other words; keep them honest. Read also South Africa’s Central Bank Rules Out Financing Government The changes are great news for the administrators, but negative news for Chileans and for Felices Y Forrados, a non-regulated stock market tracker, and advisor (for less than $3 a month) to non-professionals that need help...

June 5, 2020
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