May 2024
14May

Kenya. Bill seeks inflation-based pension raise for retirees

Retired public servants will get automatic pay raises based on the cost of living in pension computations if Parliament approves a proposed Bill. The Pensions (Amendment) Bill 2024 seeks to amend the Pensions Act, Cap 189, to include an automatic cost of living adjustment to the pensions earned by all retired public servants. The Bill seeks to cushion retirees from the effects of inflation. “In addition, the Bill seeks to provide for the use of the most current salary applicable to a...

May 14, 2024
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April 2024
29Apr

UK’s opposition Labour Party commits to triple-lock pension policy

Britain’s opposition Labour Party has committed to keeping for at least five years the so-called triple lock that guarantees rises to state pensions, if it wins the election, underscoring the importance of pensioners to the outcome of the vote. Labour have held an around 20-point lead in opinion polls over Prime Minister Rishi Sunak’s Conservative Party for the last nine months, but the one area where they tend to struggle is with voters over 65 years old. Labour leader Keir Starmer...

April 29, 2024
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17Apr

US. Inflation Concerns Still Impacting Retirement Planning Decisions

Ongoing economic challenges are changing how Americans are thinking about retirement planning, with nearly 6 in 10 pre-retirees (57%) believing that inflation poses the most immediate challenge to their retirement portfolios over the next 12 months. And this stress apparently is shifting the perception of life as a retiree, especially for those closest to retirement age. Findings from Nationwide's ninth annual Advisor Authority survey show that roughly 7 in 10 pre-retiree investors (69%)—defined as non-retired investors aged 55-65—agree that the norm...

April 17, 2024
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02Apr

Rwanda. Retirees’ body appeals for matching pension with cost of living

Pension should be matched with the cost of living to address situations such as when retirees’ welfare deteriorates due to increases in prices at the market, and franc depreciation, the president of Rwanda Pensioners’ Association, Dorothée Uwimana, told The New Times on April 1. She was referring to the fact that some retirees get as low as Rwf20,000 in pension benefits – with Rwf13,000 as the smallest pension – per month, which she said was too little to help...

April 2, 2024
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March 2024
12Mar

UK pensions failing to keep up with cost-of-living

UK pensions are failing to keep up pace with the increasing cost-of-living, as pensioners are left with just £74 after buying essentials, research from Almond Finance has shown. The research looked at the current state pension in comparison to the average cost of living in the UK and compared this across Europe to establish which country offers the most to retirees. The UK finished 17th in the Pension Breakeven Index, a fall of one place compared to the previous year’s report...

March 12, 2024
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06Mar

UK state pension could hit £13,000 ‘in next five years’

The UK state pension could pay out more than £13,000 a year by 2030 if the current triple lock rules remain in place, analysis by AJ Bell has found. Pensioners with a full National Insurance contributions record can currently get £10,600 a year (£203.85 per week). From April, this will rise 8.5% to £11,502 annually (£221.20 a week) in line with the rapid increase in earnings registered last summer. It has led to warnings that some pensioners could be landed with an unexpected tax...

March 6, 2024
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February 2024
19Feb

Zimbabwe’s Pension Crisis: Legislators Slam Government Amid Soaring Cost of Living

In Zimbabwe, a growing crisis is unfolding as retirees face the harsh reality of inadequate pension payouts in the face of soaring living costs. This pressing issue has drawn sharp criticism from legislators, who argue that the government's response has been insufficient and tardy. At the heart of the controversy is the stark disparity between the monthly pension amount and the actual cost of living, leaving many pensioners struggling to meet basic needs. The Plight of Pensioners Amidst Zimbabwe's economic fluctuations,...

February 19, 2024
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08Feb

Kenya. Pension returns trail inflation rate for the second year

Pension contributors are staring at a major erosion of their savings after annual returns on investments in 2023 by pension funds shrunk below the rate of inflation. A periodic pension industry survey done by fund administrator Zamara shows that pension schemes made a weighted average return of 1.4 percent in 2023, which was lower than the 1.7 percent return recorded in 2022. At the same time, Kenya’s average inflation stood at 7.7 percent in 2023, meaning that the average saver lost...

February 8, 2024
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07Feb

Canada. Cost of Living Crunch Impacting Retirement Savings

A new poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) found that 81 percent of people are now more concerned about paying for basic necessities like groceries, rent and their mortgage, than saving for retirement. The poll also found 44 percent said the high cost of living is hindering them from starting to save for retirement. Although individuals and families are living in a difficult economic environment, FSRA is urging consumers to prepare for the future and learn...

February 7, 2024
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02Feb

UK. One in four have stopped paying into their pensions

Almost two in five pension investors have stopped contributions or cut back on payments in the past five years, new research from wealth manager Investec Wealth & Investment has revealed. The nationwide study found a quarter have stopped paying into their pensions altogether, while another 12% have dramatically or slightly reduced monthly contributions. One of the primary reasons given was the cost-of-living crisis, followed by moving jobs or receiving a pay cut. Investec estimates the average amount of lost contributions adds up...

February 2, 2024
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