September 2020

08Sep

UK. £2.5trn of pension assets at risk from scammers

Up to £2.5 trillion of pension assets are at risk of being lost to scammers, according to a new report. The research from The Police Federation and The People’s Pension concluded that greater powers are needed to help prevent transfers to suspected scam schemes. As the Coronavirus pandemic continues to cause a rise in pension fraud, the research from workplace pension provider The People’s Pension and policing think tank the Police Foundation, found that from 13 pension providers alone,...

September 8, 2020
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August 2020

13Aug

Chilean Central Bank Measures Reduce Banks’ Risks from Pension Withdrawal

Following congressional approval of a bill to allow Chileans to withdraw up to 10% of their holdings from private pension funds, for the first time the Chilean Central Bank announced a program on July 30 to conduct repos with pension funds to purchase up to USD10 billion in senior bank bonds. This will allow pensions funds to maintain their investment positions and help reduce pressures that the pension fund withdrawal process would have likely generated on bank bonds and...

August 13, 2020
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13Aug

Risks That Can Derail Retirement

The day you retire, a weight on your shoulders seems to remove itself as you no longer need to work to survive. The years of punching a clock, worrying about losing a job and making uncomfortable small talk with that guy from accounting are over. But, among the bliss that is your 20-year vacation, there is a list of risks that retired individuals face more now than when they were working. Economic risks These may feel obvious to some....

August 13, 2020
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07Aug

Defined Benefit Pension Schemes in the UK: Asset and Liability Management

By Philippe-N. Marcaillou The goal of Asset-Liability Management (ALM) of a Defined Benefit Pension Scheme (DB) is to properly manage the risks related to variation in its building blocks on both sides of the balance sheet whilst maintaining the same expected return. This book provides a step-by-step methodology to maximize the complete restructuring and monitoring of the ALM of DB schemes. It is a product of the author's 25 years of experience and technical knowledge in ALM of...

August 7, 2020
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07Aug

AIG expands pension risk transfer reinsurance activities in Q2

American International Group (AIG), the global insurance and reinsurance player, has expanded its activities in the pension risk transfer space during the second-quarter of this year. Reporting its results recently, AIG highlighted the Life and Retirement business segment as one experiencing strong premium growth. AIG explained that its Life and Retirement division recorded income of $881 million, down $168 million compared to the prior year quarter driven by private equity losses, continued spread compression on the investment portfolio and...

August 7, 2020
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July 2020

31Jul

COVID-19 Pandemic to Intensify Risks for Insurers: EU Regulator

Insurers in the European Union are confronted with risks on several fronts that are intensified by the COVID-19 pandemic, and could face lengthy legal battles from claims relating to lockdowns, the bloc’s insurance watchdog said on Thursday. Read also Jamaica. COVID Economic Task Force Favours Lifting Pension Investment Limits Insurers and reinsurers had a “solid and comfortable” capital buffer going into the crisis, the European Insurance and Occupational Pensions Authority (EIOPA) said in a Financial Stability Report. However, a high...

July 31, 2020
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20Jul

Financial Corner: How Can You Help Lower Your Longevity Risk?

Insurance companies and pension funds view longevity risk as the risk they incur when their assumptions about life expectancies and mortality rates are incorrect, leading to higher payout levels. But for you, as an individual investor, longevity risk is less technical and more emotional: it’s the risk of outliving your money. To assess your own longevity risk, you’ll first want to make an educated guess about your life span, based on your health and family history. Plus, you’ve got...

July 20, 2020
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14Jul

UK. Does benchmarking DB transfers against a workplace pension make sense?

Under new rules to be introduced from 1st October, IFAs who are recommending a transfer out of a DB pension will need to benchmark the proposed destination for the funds against a low-cost workplace pension. But many of these workplace pensions were designed for automatic enrolment and regular contributions by active members rather than large transfers in from Defined Benefit (DB) pension schemes by members approaching retirement. New analysis from consultants LCP based on a survey of master trusts...

July 14, 2020
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08Jul

Coronavirus Risks Manageable for Canadian Pension Funds

The 11 largest pension funds in Canada, which managed CAD1.7 trillion of net assets at year-end 2019, are expected to withstand market downturns within their respective ratings given their long-term investment horizons, ability to adjust contribution rates and the captive nature of inflows, Fitch Ratings says. However, near-term valuations and returns are expected to be pressured from the economic fallout of the coronavirus pandemic, given the breadth and global nature of its impact. Fund performance will depend on asset...

July 8, 2020
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07Jul

The coronavirus crisis is pushing 13 UK universities towards insolvency, study says

Social distancing measures, travel restrictions and lockdowns have tested the ability of universities to survive without students. The institutions at higher risk of collapse are those with a large share of international students and those with significant pension obligations, the IFS said. Thirteen universities, or colleges, in the U.K. are at risk of going bankrupt as the coronavirus pandemic hits their finances and challenges the entire sector, a study by Institute for Fiscal Studies warned Monday. Social distancing...

July 7, 2020
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