August 2022
02Aug

South Africa. Two-pot system will not make any pension savings immediately available

A call from National Treasury for public comment on proposed changes to legislation, as part of the overhaul of SA’s retirement savings industry, discloses a very important aspect about accessing your pension fund in that members of pension and retirement funds will not be able to access their existing pension fund money once the new legislation comes into effect next year. In effect, the new ‘two-pot’ system seems to have evolved into a ‘three-pot’ system. The most recent statement from Treasury...

August 2, 2022
News, , ,
Read more...
01Aug

Collective defined contribution schemes launch in Great Britain

Providers in Great Britain are now able to apply to launch collective defined contribution schemes, a development hailed by pensions minister Guy Opperman for its potential to “transform the UK pensions landscape”. Under CDC schemes, employers and employees pay a fixed rate of contributions, collected in a manner similar to defined contribution schemes. Benefits are paid with a target in mind, similar to defined benefit schemes, but with the prospect of variable increases — and the possibility of decreases. Read also...

August 1, 2022
News, , ,
Read more...

July 2022
28Jul

The 2022 BlackRock Read on Retirement

By BlackRock Retirement savings isn’t always an even playing field, but as an industry we can seek better outcomes. That’s why we’ve reimagined our DC Pulse survey to provide a more accurate “Read on Retirement” and what it means for more and more people. The pandemic caused people to rethink what they need for retirement, and inspired employers to offer more strategies to help employees save for the short and long-term. Yet not everyone has access to a workplace plan, and...

July 28, 2022
Books, System Characterization, , , , ,
Read more...
25Jul

This Is the Average Retirement Age in the U.S. — and Why It’s a Problem

Americans may be retiring too early for their own good. Many people aim to retire in their mid- to late 60s. But the average retirement age in the U.S. is considerably younger than that. According to recent Gallup data, the average reported retirement age is 61. Now on the one hand, that's up from age 57 back in 1991. But it's also a pretty young age to retire at. And those who go that route could end up struggling financially because...

July 25, 2022
News, , ,
Read more...
22Jul

Myopic Savings Behaviour of Future Polish Pensioners

By Sonia Buchholtz, Jan Gaska & Marek Góra Low saving rates combined with low effective retirement age herald old-age poverty. This paper examines the preferred strategies of future Polish pensioners in order to sustain the standard of living in the future. A two-step approach is used: as a first-best strategy, we explore determinants of supplementary saving with binary logistic models; as a second-best strategy, we examine alternative options with principal component analysis. Future retirees rarely accumulate long-term savings, do not use...

July 22, 2022
Articles, Savings, , , ,
Read more...
15Jul

Getting Older But Not Poorer

By David Amaglobeli, Era Dabla-Norris & Vitor Gaspar Unless you live in France, you might not think recent mass strikes over the proposed pension reforms in that country have anything to do with you. But given how fast demographics are changing around the world, that would be a mistake. If you live in Europe and your parents are getting ready to retire at the age of 65 (the statutory retirement age in many countries), you should know that today there are,...

July 15, 2022
Aging, Books, ,
Read more...
08Jul

The Role of Longevity Annuities in Different Socioeconomic Classes: A Canadian Case Study

By Rui Zhou, Johnny Siu‐Hang Li & Kenneth Zhou A longevity annuity is a deeply deferred annuity which begins payments very late in life. By transferring some of the risk of outliving retirement savings at advanced ages to annuity providers, longevity annuities provide retirees with enhanced later-life financial security. This paper aims to investigate the impact of longevity annuity provision on retirement income planning for Canadians, on the basis of the tax rules and retirement system in Canada. The research...

July 8, 2022
Articles, Investing, Savings, , , ,
Read more...
07Jul

YuLife picks up $120M at an $800M valuation for gamified, wellness-focused life insurance

YuLife originally made a name for itself in its home market of the U.K. for its new approach to the provisioning of life insurance: yes, sell a policy that provides financial security to your people in the event of your death; but do so with a focus on improving the policyholder’s current life with wellness opportunities, and encourage use of that with gamification — a model that not only is aimed at benefitting the policyholders more, but increases engagement...

July 7, 2022
News, , ,
Read more...
05Jul

Over 2,000 Retired Nigerian Workers Were Cut Off from Monthly Pension

Some Nigerian workers will have to live by what they have saved as their pension account failed to meet the regulatory standard The number of workers according to the National Pension Commission is over 2,000 from both the public and private There are currently over 9.67 million pension accounts in the country with a pension fund value at N34.11 trillion More than 2,084 retirees who can no longer receive monthly pension payments and who left the Contributory Pension Scheme in the first...

July 5, 2022
News, , ,
Read more...

June 2022
22Jun

US. Younger Boomers May Outlive Their 401(k) Savings

Baby boomers are not renowned for their frugality, having grown up in an era of rapid economic growth, mass consumerism and a feeling that the money faucet will never turn off. In retirement, however, the money can run out — a risk some boomers face as they spend their way too quickly through their retirement accounts, according to a new study from the Center for Retirement Research at Boston College. That risk is particularly big for younger boomers whose careers...

June 22, 2022
News, ,
Read more...