December 2022
02Dec

Inequities in the Golden Years: How Wealth Shapes Healthy and Work-Free Life

By Hessam Bavafa, Anita Mukherjee & Tyler Welch Recent work has established that the gradient of life expectancy with respect to wealth is large and widening. We make three contributions to build on that result using two recent decades of data from the United States. First, the additional years are in healthy, disability-free years, indicating substantial gains for the wealthy. Second, the return to wealth in achieving these healthy years is increasing over two recent decades for all but the...

December 2, 2022
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November 2022
30Nov

Kenya. Employers want new NSSF rates spread over five years

Employers want the proposed increase in the National Social Security Fund (NSSF) contributions spread over  five-years, even as they call for more consultation. The Federation of Kenya Employers (FKE) says this will enable employers and employees adjust to accommodate the new rates, further adding that it should be effected based on “statutory minimums.” This comes as the government continues to push for an increase on the monthly contributions through the NSSF Act.  It seeks to raise this from the Sh200 flat...

November 30, 2022
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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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28Nov

U.K. Pension savers ‘lost £1.7 billion on retirement transition

New research from HSBC Tomorrow Master Trust shows workplace pension scheme members are losing around £1.7 billion a year during their transition into and in retirement, due to savers choosing costly pathways to access their money. While some of this loss comes from scheme members withdrawing more than the 25% tax-free lump sum, exposing them to hefty tax penalties, many are potentially buying products that are not the optimal solution for their circumstances. The research was commissioned for a report Converting...

November 28, 2022
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24Nov

UK. Millennials risk losing nearly £6,600 by pausing pension contributions

People pausing their pension contributions in their 20s and 30s could stand to lose almost £6,600 by the time they reach retirement age, analysis from Money Minder has revealed. The research found that those in their 20s that paused pension payments for a year could have an additional £1,371, they risked losing up to £5,770 from their total pension fund when they reach state pension age, due to the accumulation of the investment returns contributing to the growth of the...

November 24, 2022
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22Nov

US. How many retire with one million dollars?

Saving $1 million (or more) for retirement is a great goal to have. Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved. If you’re looking to be...

November 22, 2022
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18Nov

Make pension schemes attractive: a call for Kenyan pension funds

Pension funds in Kenya are not attracting enough savers from both the formal and informal sector because of low penetration, experts say. A publication of the Zamara Kenya Pensions Watch 2022, shows coverage of the current pension in Kenya is at around 17.7 per cent of the total employed population. About 83.2 per cent of employed Kenyans in the informal sector have no access to any form of pension savings. Speaking at a Pension Trustee Seminar, organised by Zamara, former education CS...

November 18, 2022
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16Nov

Age for starting savings for pension drops in China

The average age for starting saving for a pension dropped sharply in China from 38 to 35, according to a survey on the prospect of China's elderly care released by Fidelity International and Ant Fortune on Tuesday, the Paper reported. Perceptions on and behaviors for retirement planning continue to improve when China's personal pension policy landed as a third pillar to support the country's pension system with the basic endowment insurance as the first pillar, and the enterprise annuity as...

November 16, 2022
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14Nov

South Africa. Unions and SOEs that fail to pay employee benefits are facing few to no consequences

Retirement, medical and other contributions deducted from employees’ salaries are not being paid to the relevant funds and schemes by some SOEs and unions. In a tough economic environment, unions and state-owned enterprises (SOEs) are starting to default on employee benefits such as retirement fund and medical scheme contributions. And there are apparently few to no consequences for this behaviour. Earlier this week, Pension Funds Adjudicator Muvhango Lukhaimane issued a ruling against the South African Transport and Allied Workers Union (Satawu)...

November 14, 2022
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01Nov

US. Some workers halt 401(k) plan contributions to cope with inflation

More than half of American workers have cut or stopped contributing to their retirement savings plans to cope with soaring prices and 40-year-high inflation rates. The findings come from a third-quarter market perceptions study by Allianz Life Insurance of North America. The September survey of 1,004 workers found that 54% halted or reduced their 401k and other retirement savings between July and September. Perhaps more alarming, 43% admitted dipping into retirement nest eggs to cope with the higher cost of gas, utilities,...

November 1, 2022
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