April 2020

27Apr

Suspended UK pension contributions could total £1bn

Up to £1bn in pension contributions could be suspended this year as businesses strike deals with retirement scheme trustees to keep afloat during the Covid-19 crisis. The estimate emerged from a Financial Times survey of professional services companies advising more than half of the 5,500 employers backing “defined benefit” pension schemes in the UK. A lockdown of the nation’s non-essential businesses and households has left many companies facing steep reductions in revenues and a subsequent cash crisis, resulting in interventions by...

April 27, 2020
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March 2020

05Mar

UK. Record Numbers Saving into Workplace Pensions

More than three-quarters of British employees are now members of a workplace pension scheme, according to new figures from the Office for National Statistics. And for the first time, occupational defined contribution (DC) pensions have overtaken all other types of pension, including defined benefit (DB) or final salary schemes. The proportion of employees in a workplace pension hit 77%, the highest since comparable records began in 1997 – it marks a huge advance on the 47% in these schemes...

March 5, 2020
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February 2020
13Feb

Gig economy sucking super savings dry

By  Ally Selby  It's causing everyday Aussies to retire with much less, forcing the country's taxpayers to carry the added costs, according to a Treasury submission by the Actuaries Institute. I n a paper submitted to the Treasury's Retirement Income Review Panel, the Institute warned of the new risks to Australia's superannuation system. "The gig economy... creates a new set of problems with respect to the superannuation guarantee (SG) system," it said. "It provides people with different types of jobs...

February 13, 2020
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07Feb

Demography and Provisions for Retirement – the Pension Composition, a Behavioral Approach

By B.M.S. van Praag, J. Hop Pensions may be provided for in a modern society by a mix of several methods, namely by voluntary individual savings, mandatory fully-funded occupational pension systems, mandatory social security financed by pay-as-you-go, and old-fashioned hoarding in cash. Here, we call the specific mixture of the four systems the pension composition. We assume that individual workers decide on their own individual savings, that the fully-funded occupational system is decided upon by the age cohort of...

February 7, 2020
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January 2020

31Jan

28% of Americans in Their 60s Are Extremely Short on Retirement Savings

Though there's no magic savings number that guarantees financial security during retirement, as a good rule of thumb, it's smart to close out your career with about 10 times your ending salary socked away. The reason? Social Security will only replace about 40% of the income you're used to if you're an average earner. If you're a higher earner, it will replace even less. Meanwhile, most seniors need considerably more than 40% of their former paycheck to stay afloat...

January 31, 2020
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December 2019

27Dec

Indians Fear Running Out of Funds in Retirement

It is said that money can’t buy happiness but Indian earners beg to differ. Recently released Standard Chartered Wealth Expectancy Report 2019 shows that as much as 77 per cent of the 1,000 Indian respondents consider money essential to their happiness. In fact, wealth is so important that many Indian earners or wealth creators, as the report calls them, are anxious about their financial future. The survey was conducted in 10 countries across Asia, Africa and Middle East, among...

December 27, 2019
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February 2017

03Feb

Defined ambition pensions – Have the Dutch found the golden mean for retirement savings?

By Erik Schouten & Thurstan Robinson In February 2012, the UK minister for pensions proposed that companies should perhaps be able to provide a new type of pension – Defi ned Aspiration pensions or Defi ned Ambition (DA) pensions, as they are called in the Netherlands. In this article, we take a closer look at DA pensions, examining the Dutch experiences to date with the introduction of DA pensions . We look at what DA pensions have to offer employers...

February 3, 2017
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03Feb

Beyond Contributory Pensions : Fourteen Experiences with Coverage Expansion in Latin America

By Rafael Rofman, Ignacio Apella and Evelyn Vezza Latin America's population is aging, and many among the growing elderly population are not protected by traditional pension schemes. In response, policy makers have been reevaluating their income protection systems so that between 2000 and 2013, the majority of Latin American countries reformed their social pension schemes to provide near-universal coverage for the elderly. Before this unprecedented wave of reform, most income protection in Latin America was provided through contributory pensions available...

February 3, 2017
Savings, System Sustainability
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03Feb

Do Savings Increase in Response to Salient Information about Retirement and Expected Pensions?

By Mathias Dolls, Philipp Doerrenberg, Andreas Peichl and Holger Stichnoth How can retirement savings be increased? We explore a unique policy change in the context of the German pension system to study this question. As of 2004, the German pension authority started to send out annual letters providing detailed and comprehensible information about the pension system and individual expected pension payments. This reform did not change the level of pensions, but only manipulated the knowledge about and salience of expected...

February 3, 2017
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03Feb

Saving and taxation in a voluntary pension system : toward an agent-based model

By Balázs Király Mandatory pension systems only partially replace old-age income, therefore the government also operates a voluntary pension system, where savings are matched by government grants. Accounting for the resulting tax expenditure, our models describe the income flow from shortsighted to farsighted workers. 1. In rational models, explicit results are obtained, showing the limited learning of shortsighted workers. 2. In agent-based models, this learning is improved and this raises the shortsighted workers' saving and reduces perverse income redistribution. (more…)

February 3, 2017
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