November 2022
30Nov

Canada. Are longevity fund solutions going to change the retirement income game?

Over the past few years, Canada’s investment fund industry has sought to revolutionize Canada’s retirement-planning landscape with the introduction of innovative products. In 2021, Purpose Investments launched the Longevity Pension Fund, while Guardian Capital introduced its own GuardPath Longevity Solutions earlier this year. While they don’t offer estate-planning guarantees, both go beyond the scope of traditional mutual funds by tapping into mortality credits, an idea that was first explored through the use of tontines in the 16th century. As the fund...

November 30, 2022
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28Nov

U.K. Pension savers ‘lost £1.7 billion on retirement transition

New research from HSBC Tomorrow Master Trust shows workplace pension scheme members are losing around £1.7 billion a year during their transition into and in retirement, due to savers choosing costly pathways to access their money. While some of this loss comes from scheme members withdrawing more than the 25% tax-free lump sum, exposing them to hefty tax penalties, many are potentially buying products that are not the optimal solution for their circumstances. The research was commissioned for a report Converting...

November 28, 2022
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23Nov

South Africa’s government workers march across major cities for higher pay

Thousands of South African government workers took part in nationwide demonstrations on Tuesday (Nov 22) to demand a 10% increase in their salaries. Negotiations between public sector unions and the government are deadlocked. The government is resolved to unilaterally implement a 3% pay hike, which hasn't satisfied the unions. In Pretoria, workers downed tools and marched to the offices of the national treasury to submit their demands. Employment minister Thulas Nxesi, a former trade unionist, was booed by workers as he arrived...

November 23, 2022
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16Nov

68% of Brits back pension triple lock

‘Attacking’ it would be a ‘seriously high-risk and deeply unpopular move’ More than two-thirds of UK adults support an inflation-matching increase in the state pension next year, AJ Bell research has found. Of the 4,000 Brits asked if they backed increasing the state pension in line with wage growth, inflation, or not at all, the overwhelming majority (86%) felt the state pension should increase next year. Most (68%) said they backed an inflation-linked increase, while a further 18% said it should be...

November 16, 2022
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14Nov

UK. Pension savers face ‘double’ tax hit as inflation soars

The government’s decision to freeze the lifetime allowance could yield up to £2bn for the Treasury, double the £1bn it previously projected due to a surge in inflation this year. The lifetime allowance, the amount a pension holder can benefit from without having to pay extra tax, was frozen at £1,073,100 in the 2021 Budget by former chancellor and current prime minister, Rishi Sunak. But according to pension consultants LCP, the freeze did not take into account inflation proofing and over...

November 14, 2022
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October 2022
28Oct

UK. State pensions triple lock to stay, hints Nadhim Zahawi

Guarantee of at least a 2.5pc rise could be kept to help ‘uniquely vulnerable’, even though No 10 refused to commit to the pledge The state pension triple lock will be kept in place, Nadhim Zahawi has suggested, after Number 10 refused to commit to the pledge. Mr Zahawi, the new chairman of the Conservative Party, said pensioners were "uniquely vulnerable" amid the cost of living crisis and ahead of next month's Autumn Statement, which is expected to result in wide-ranging...

October 28, 2022
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28Oct

Egypt: Increase of minimum wage in public service to address rising cost of living

Egypt has increased the minimum wage in the public sector from 2,000 Egyptian pound ($101.3) to 3,000 in a move to help workers surf the increase in the cost of living, reports say. Prime Minister Mostafa Madbouly who announced the decision said the government will pay an exceptional bonus of EGP 300 for employees in the public sector and its affiliate companies, as well as pensions. Read also Nigeria. How data analytics, artificial intelligence will help PFAs enhance customer service The hike...

October 28, 2022
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28Oct

Long-term care equality index 2021

By SAGE Try as we might, we may never fully process and adequately convey what we, people working in long-term care communities and hospitals, have experienced during these past fifteen months. But just like the virus which we cannot see but has nonetheless turned our world upside down, even though we cannot see what has happened to us and others from within, we carry our experiences, and their effects on us, in our heart, mind, body, and spirit. In the...

October 28, 2022
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28Oct

Optimal Savings and Portfolio Choice with Risky Labor Income and Reference-Dependent Preferences 

By Servaas van Bilsen, Roger J. A. Laeven & Theo Nijman This paper explores the joint impact of reference-dependent preferences and non- tradable risky labor income on optimal savings and portfolio decisions. We develop a non-trivial solution procedure to determine the optimal policies. Our results reveal that the impact of permanent labor income shocks on both the optimal savings rate and the optimal portfolio share is more pronounced under reference- dependent preferences than under CRRA preferences. In particular, we find...

October 28, 2022
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26Oct

In the U.S., Income and Wealth are Concentrated at the Top. Where Does This Leave Older Americans?

Disparities in income and wealth among older Americans have widened in recent decades. Higher income and wealth are both associated with better prospects for living a long life. So where does this leave older Americans? Today’s WatchBlog post looks at our new report on these trends with older Americans and retirement, as well as what we can see happening in three other countries with large economies—Canada, Germany, and the United Kingdom. How does the U.S. compare? In some ways, we are similar to...

October 26, 2022
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