July 2020

29Jul

Latin America private pension systems ‘constantly under political threat’: FIAP

A private pension fund industry chief said the specter of political interference is constantly circling the sector in Latin America. Decisions correspond more to ideological bias of “certain political groups” than the advice of pension experts, a webcast hosted by industry organization the International Federation of Pension Funds Administrators (FIAP) was told. “The private pension systems in our region are constantly under political threat,” said FIAP chairman Guillermo Arthur Errázuriz. He cited the example of Chile, where some quarters...

July 29, 2020
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April 2020

18Apr

Pension markets in focus

By OECD The 2019 edition of Pension Markets in Focus provides an overview of the funded and private components of pension systems in 88 jurisdictions and outlines latest developments in the markets worldwide. It exhibits an extensive range of indicators relevant to funded and private pension arrangements, harmonised and standardised across jurisdictions. It monitors the key financial aspects of these arrangements, such as the amount of accumulated assets, the way these assets are invested and their investment performance, both...

April 18, 2020
Books, Pension Management, System Sustainability,
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15Apr

Canada. The coronavirus has created a tremendous financial opportunity for workers with a pension

Unique opportunities sometimes come in extreme times. The one detailed below on commuting the value of your pension won’t be an option for many, but for those with the ability to take advantage, it could meaningfully improve their retirement finances for years to come. Read also Canada’s Pension Funds Prepare for Post-Virus World This opportunity is based on three fundamental facts First, the current or commuted value of your pension is much higher when interest rates on 5 Year Canadian Bonds are...

April 15, 2020
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03Apr

Pension Policy in Europe and the United States – Towards a New Public-Private Pension Mix

By Onorato Castellino, Elsa Fornero, Christina Benita Wilke Pension reform has occupied and will continue to occupy an important place in the welfare state reform agenda on both sides of the Atlantic. In both the European Union (EU) and the United States (US) demographic forces in the form of an aging population and low fertility pose significant long-run fiscal challenges to traditional public pay-as-you-go (PAYG) systems. In addition, the pace of pension reforms in most EU countries has accelerated...

April 3, 2020
Articles, Pension design, , ,
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March 2020

25Mar

German federation proposes standard product for private pensions

The Federation of German Consumer Organisations – vzbv – and the state of Hesse have proposed a standard product, or Extra Rente, for private pensions to reform the system. The proposal aims to fix some of the problems brought by the privately funded pension system – Riester-Rente – since its introduction almost 20 years ago, precisely at the time when the government coalition weighs up possible changes. Dorothea Mohn, head of the financial market team at Vzbv, told IPE...

March 25, 2020
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February 2020
07Feb

Pensions and Legal Policy: Lessons on the Shift from Public to Private

By Amanda Cooke This monograph explores the historical position of pensions law in the UK and the recent influences which have led to the introduction of Auto-Enrolment and subsequent reforms. Alternative models, such as the US and Australia are also considered as well as the function of law in bringing about political changes. The question of saving for retirement is of national and international importance and many governments are wrestling with the issue of how to deal with the pension...

February 7, 2020
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October 2019

18Oct

Dutch pension pots stand out among global retirement funds

The world’s rich nations face a double-whammy, with ageing populations meaning more retirees — just as low and negative interest rates make it harder for pension funds to secure the investment returns needed to fill up their coffers. Read also PLSA 2019: Fintech could play key role in decumulation phase Pensions typically have three pillars: a basic state payout designed to prevent people falling into poverty once they stop work; a larger slice related to lifetime earnings; and voluntary top-ups...

October 18, 2019
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September 2019

20Sep

China’s workforce saving more for retirement amid concerns about state pension, survey finds

China should not be alarmed by a much slower economic growth rate in the coming years, perhaps as low as 5 or even 4 per cent, with the economy now large enough to still create sufficient jobs at these growth rates, according to three prominent Chinese economists who advise the government. The headline gross domestic product (GDP) growth rate slowed to 6.2 per cent in the second quarter this year, the lowest figure since quarterly records began in March...

September 20, 2019
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10Sep

US. Are Millennials Preparing For Retirement?

When we talk about retirement security, it’s usually older workers we have in mind. But what about millennials? People currently aged 23 to 39 now make up the largest portion of the U.S. labor force. The future of retirement is, literally, the future of millennials. On the fifth and final (for now!) episode of my podcast Reset Retirement, we explored what’s next for American retirement. For millennials, it’s a mixed bag. While their savings are less than ideal, thanks...

September 10, 2019
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June 2019

07Jun

Switching Costs and Competition in Retirement Investment

By Fernando Luco How do different switching costs affect choices and competition in a private pension system? I answer this question in a setting in which variation in employment status allows me to identify two switching costs that jointly affect enrollees’ decisions: the cost of evaluating financial information and the cost of the bureaucratic process that enrollees must navigate when switching. I use this variation to estimate the different switching costs and study their impact on competition among pension...

June 7, 2019
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