November 2022
28Nov

Malaysia. Concerns over raising the retirement age

THE call for Malaysia to increase the retirement age, due to its ageing population and high number of citizens with insufficient savings, has grown louder as the Covid-19 pandemic has further eroded their savings. There are also suggestions to offer fixed term contracts, incentives for higher contributions towards savings as well as to increase the overall remuneration for employees and improve their financial literacy. Most Malaysians rely on their Employees Provident Fund (EPF) savings to sustain their expenses after retirement. The recent...

November 28, 2022
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25Nov

41% of U.S. women expect to retire at age 70, older or not at all: survey

Two-fifths (41 per cent) of U.S. women say they expect to retire at age 70 or older or don’t plan to retire at all, according to a survey by the Harris Poll on behalf of the Transamerica Center for Retirement Studies. Among women who plan to work past age 65 or who don’t plan to retire, 81 per cent cited financial reasons. Nearly half (45 per cent) said they expect to rely on self-funded savings or investments in retirement, while...

November 25, 2022
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October 2022
27Oct

France’s Macron vows to implement contested pension changes

French President Emmanuel Macron vowed to implement contested pension reforms that would make younger generations work longer. In an interview Wednesday evening on France 2 television, Macron said the changes would start being applied next year. “There’s only one way to do it if we are lucid. Since we are living longer, it’s to work longer,” he said. Read also US. Early retirement took off during the pandemic The minimum retirement age to get full a pension would be gradually increased from 62...

October 27, 2022
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26Oct

US. Early retirement took off during the pandemic

Even as many Americans have returned to work over the past year, making up for most of the pandemic losses in the labor force, a sizable number of older workers are choosing to remain on the sidelines. In September, the share of people 55 and older who were working or looking for work was down 1.5 percentage points as compared with February 2020, according to the Labor Department. (For comparison, prime-age workers, or those 25 to 54 years old, are...

October 26, 2022
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14Oct

Bounded Rationality and Optimal Retirement Age

By Hyeon Park This paper explores a lifecycle model of labor supply and endogenous retirement behavior for households whose planning window is truncated and who will reoptimize as extra information on productivity is revealed over time. This short horizon model internalizes the restriction on rationality for temporal resource allocation and the labor supply is closely dependent on the degree of productivity changes in view. With the model, the endogenous retirement timing---the moment at which the marginal utility from the intended...

October 14, 2022
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04Oct

US. Rehiring Retirees And The Impact To Retirement Plans

The IRS had previously issued FAQs to explain the retirement plan rules of the CARES Act. The original guidance answered questions about expanded distribution options and favorable tax treatment for retirement distributions needed because of the impact of coronavirus. In October, the IRS expanded the FAQs to include guidance on retiree benefits. While these new answers by the IRS relate directly to pension plans, they might be useful in administering a 401(k) plan, too. An employer has a choice when...

October 4, 2022
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September 2022
26Sep

Swiss voters support increase in women’s retirement age

Swiss have voted in favor of the proposal by a narrow margin in a referendum. Another proposal, on imposing stricter regulations on livestock farming, failed to pass. Swiss voters accepted the government's pension reform plan by a narrow margin on Sunday. The plan would raise the retirement age for women from 64 to 65, brining it in line with the age for men. Read also Sustainable finance policy a ‘blind spot’ for European pension funds A concurrent vote on imposing stricter regulations in...

September 26, 2022
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21Sep

Ireland to increase state pension for those who work beyond 66

Ireland will offer anyone over 66 a higher state pension the longer they stay in work, sidestepping a recommendation by a government-appointed commission to gradually increase the retirement age to 68 to help fund the ageing population. Under the proposed flexible model agreed by ministers on Tuesday, people will have the option from 2024 to continue working up until the age of 70 in return for a higher pension for each additional year they work. The state pension currently stands at...

September 21, 2022
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09Sep

France’s biggest union warns Macron: Reforming pensions now would ‘set France on fire’

France’s biggest union has warned President Emmanuel Macron that reforming pensions at a time of high inflation and economic woes would “set France on fire.” In an interview with RTL radio on Thursday, Laurent Berger, the president of the French Democratic Confederation of Labour (CFDT), said the French people “are in a very tense moment, with a lot of anxiety.” “I tell the government and will also tell the president: To start pushing back the legal retirement age in a vertical...

September 9, 2022
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08Sep

Switzerland. Pensions vote: ‘the reform comes at the expense of women’

Vania Alleva, the boss of Switzerland’s largest trade union, says wage discrimination should be eliminated before women are made to work longer. She wants voters to say ‘no’ to a reform of the old-age pension system on September 25. The central plank of the reform is an increase in the retirement age for women from 64 to 65, putting them on an equal footing with men. Government, parliament, and parties from the right and centre all say this is a...

September 8, 2022
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