March 2021
09Mar

Taking a workforce break to raise children hurts retirement savings – economist

By Margarida Correia Taking time off from the workforce to take care of children can put a serious dent in workers’ long-term retirement savings. That was one of the central points that Michael Madowitz, an economist with the Center for American Progress, made as the keynote speaker Monday at Pensions & Investments' 2021 Defined Contribution Virtual Conference. A 29-year-old woman earning $44,000 who decides to take two years off for raising a child would not simply lose $88,000 for the two years she...

March 9, 2021
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05Mar

US. Stimulus Bill Freezes Retirement Plan Contribution Limits

What You Need to Know The freeze would take effect in 2031. It is intended to reduce a tax deferment that favors the highest earners, Democrats say. Retirement plan lobbyists are working to get the provision stripped from the Senate version of the bill. The $1.9 trillion economic stimulus package, which passed the House on Feb. 27, freezes retirement plan contribution limits starting in 2031. The bill, H.R. 1319, the American Rescue Plan Act of 2021, would freeze the annual cost-of-living...

March 5, 2021
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03Mar

South Africa. The battle for pension savings: Between secure retirement and survival

The retirement savings industry keenly follows Finance Minister Tito Mboweni's speech every year, if not for anything else, to advise savers how to maximise their tax benefits when tax rates and bracket adjustments are announced. The 2021 Budget speech, however, had a lot of game changers for the industry. The automatic enrolment of workers into retirement plans that the sector has long been advocating for, and the annuitisation of provident fund benefits – which has been delayed over and over...

March 3, 2021
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February 2021
25Feb

Germany. Vantik and Mastercard simplify saving for retirement with new debit card

Financial security in retirement is one of the most urgent issues in Germany and Europe. In order to offer people a simple access to savings for retirement, the Berlin-based Fintech Vantik announces a partnership with Mastercard and the banking-as-a-service-platform Vodeno. The heart of the cooperation is the combination of a free debit Mastercard with long-term savings: users of the Vantikcard receive 1% cashback on every purchase, which are automatically invested into a sustainable pension fund. Saving for retirement is thus...

February 25, 2021
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24Feb

US. Women’s Retirement Savings Especially Affected by the Pandemic

By Amanda Umpierrez The pandemic has aggravated financial insecurity for millions of American workers, but data shows it’s affected women more severely than men. A study by Nationwide found that among 297 women with investable assets of $100,000 or more, 72% believe the pandemic had a negative impact on their retirement savings. Additionally, women listed losses from the pandemic as their top financial concern last year. Other worries involved protecting assets, health care costs and longevity risk during retirement. “With women, when...

February 24, 2021
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23Feb

US. 3 Retirement Myths, Debunked: Social Security, The Stock Market And Savings

Retirement should inspire thoughts of mixed drinks on the beach and long afternoons with the grandkids. But for many people, just mentioning the word spurs anxiety. Younger Americans are waiting too long to put money away, middle-aged workers rarely make up for lost time and people approaching retirement hope to hold onto their jobs long enough to save just a few dollars more. Most people know they should be doing more to save for retirement, yet too few of us are...

February 23, 2021
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16Feb

Global retirement assets to GDP ratio hits record 80% in 2020

Total assets in the 22 largest major retirement markets reached a record 80% of GDP in 2020, up 11.2 percentage points for the year. Read also Canadian Pensions Adapt Investment Strategies for Post-COVID-19 World The Thinking Ahead Institute's latest Global Pension Assets Study, for the year ended Dec. 31, said the rise in the ratio of retirement assets to average GDP was the largest year-on-year rise since the study began in 1998. Read also International retirement, savings plans grow in popularity While this...

February 16, 2021
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16Feb

Does financial wellness education increase retirement plan participation?

Any good advisor knows, a successful retirement plan requires more than a robust investment menu. Plan participation is essential, but also one of the biggest challenges. Financial wellness education can increase participation, bolstering plan participants’ chances of a successful, on-time retirement. In turn, this helps plan sponsors by reducing costs associated with retirement-age employees. With American adults experiencing increased financial stress during the pandemic, plan sponsors and participants are especially interested in financial wellness benefits that can help reduce financial stress...

February 16, 2021
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January 2021

20Jan

OECD launches MENA Pension Oultook report for the fisrt time

In the first pensions forum for OECD in the Arab World, the global economic think-tank says: ➢ The world needs to improve sustainability and increase flexibility in pension arrangements ➢ Coronavirus is causing an unprecedented shock to labor markets as well as to pension systems ➢ Even before COVID-19, pension funds were already facing significant challenges of an aging population and declining investment returns ➢ Pension systems could be more resilient to future challenges if pension funds include two accounts, one for retirement...

January 20, 2021
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19Jan

Kenya. Pensions holding in State bonds crosses historic Sh1 trillion mark

Pension funds have raised their holding in government debt past the Sh1 trillion mark for the first time ever, new data shows, on the back of volatility in the securities market. The returns-chasing funds doubled their investments in government securities in the six months to December 31, stashing in Sh133.33 billion compared to Sh52.29 billion in a similar period of the previous year — an equivalent of a 154.98 percent jump. Also Read: OECD launches MENA Pension Oultook report...

January 19, 2021
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