March 2023
16Mar

UK abolishes tax threshold on pension allowance to encourage people to work longer

British finance minister Jeremy Hunt on Wednesday said he would abolish the tax thresholds high earners face when they invest in pensions, in a bid to encourage them to keep working and reduce the number of people taking early retirement. Hunt said in his annual budget that he would scrap the so-called lifetime allowance, which had meant that people faced a 25% levy if they saved around 1.1 million pounds ($1.33 million)in their pension pots. The capped amount of money that...

March 16, 2023
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10Mar

The gender gap in pension saving

By Jonathan Cribb, Heidi Karjalainen & Laurence O’Brien This report is an output from a programme of research on ‘Pension saving over the lifecycle’ (WEL /FR-000000374) that is funded by the Nuffield Foundation. Co-funding from the ESRCfunded Centre for the Microeconomic Analysis of Public Policy (ES/T014334/1) is also gratefully acknowledged. We are grateful to Alex Beer, Carl Emmerson and Paul Johnson for useful comments, and to Rowena Crawford for discussion and advice on this work. This work was produced using data from...

March 10, 2023
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10Mar

Legal & General U.S. Gig Economy study

By Sir Nigel Wilson, John Godfrey & Edyta Borowy (Legal & General) The data was collected via online survey fielded to individuals sample sourced from YouGov’s US panel. The survey scripted and hosted on Gryphon, YouGov’s proprietary survey scripting platform and the field work took place between August 19 and 31, 2022. 1,044 surveys of freelancers and self-employed workers between 18 and 60 years old, non-student/non retired drawing 60% or more of their income from gig work were completed. Key...

March 10, 2023
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10Mar

The Influence of Financial Literacy on Retirement Planning in South Africa

By Nyasha Tapiwa Dhlembeu, Mamekwa Katlego Kekana & Mpinda Freddy Mvita Background: A shift in the retirement planning and pensions landscape has created an enormous responsibility for individuals to plan for their retirement provision actively. Very few South Africans reach the average retirement age of 65 years with sufficient funds to sustain themselves during their retirement. Purpose/objective: Using secondary data from the 2011 South African Social Attitudes Survey (SASAS), this study aims to examine the influence financial literacy has on the...

March 10, 2023
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10Mar

Nigeria. Pension Fund Assets Increase By ₦568.33b – PenCom Boss

It appears that are days of enjoyment waiting Nigerian pensioners and the stories of months of wait pay will be over. The pension fund in Nigeria is real growing. There is something that the Director-General (DG) of Pension Commission Aisha Dahir-Umar, wants you to know. It is about the pensioners money that is now available. He says the Pension Fund Assets under Management (AuM) increased by ₦568.33 billion from ₦14.42 trillion as at September 30 to ₦14.99 trillion as at December...

March 10, 2023
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10Mar

A Leveraged Gender Gap: The Combined Effect of Longevity Risk (Mis)-Perception and Financial Risk-Taking

By Giovanna Apicella & Enrico G. De Giorgi Financial risk and longevity risk are the main risks affecting pension income. This paper analyses gender differences related to how financial risk taking and survival expectations are correlated. We analyse data from the “Survey of Health, Ageing and Retirement in Europe” (SHARE) database and find a significant gender gap in self-assessed risk tolerance, consistently with previous literature. Moreover, we show that individuals with realistic survival expectations (i.e., survival expectations that are close...

March 10, 2023
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09Mar

Reverse SSNIT policy that disqualifies persons aged 60 from contributing to scheme – ACRR petitions NPRA

The Africa Centre for Retirement Research (ACRR) has petitioned the National Pensions Regulatory Authority (NPRA) to reverse the Social Security and National Insurance Scheme (SSNIT) policy that disqualifies members aged 60 and above from contributing to the scheme. The group in a statement dated March 7 noted that if the policy is not reversed, “it will adversely and significantly affect the retirement wellbeing of over 11,000 workers and even more in the future.” This comes after SSNIT issued a policy directive...

March 9, 2023
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07Mar

Undersaving in British pensions still substantial, says government report

New government figures show the level of undersaving in British pensions is still substantial, despite increased pension participation in the private sector. ‘Analysis of future pension incomes’, published by the Department for Work and Pensions (DWP), updates figures from an auto-enrolment review in 2017 with a new estimate of the number and proportion of working-age individuals aged 22 to state pension age who are not saving enough for their retirement. The new report – covering England, Scotland and Wales – is...

March 7, 2023
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February 2023
24Feb

Fixed and Variable Longevity Annuities in Defined Contribution Plans: Optimal Retirement Portfolios Taking Social Security into Account

By Vanya Horneff, Raimond Maurer & Olivia S. Mitchell This paper investigates retirees’ optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits through delayed claiming. We determine that including deferred income annuities in DC accounts is welfare enhancing for all sex/education groups examined. We also show that providing access to well-designed variable...

February 24, 2023
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24Feb

U.S. Here’s how much 401(k) plans fell last year

Saving for retirement requires looking at the big picture, but it can be dispiriting when your 401(k) or other retirement plan takes a beating — a common plight for American workers last year, according to new data from Fidelity. The average balance in a 401(k) plan tumbled 20.5% in 2022, reducing employee nest eggs to $103,900 at the end of 2022, Fidelity said on Thursday. That compares with an average balance of $130,700 a year earlier, the financial services firm...

February 24, 2023
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