February 2024
07Feb

Canada. Cost of Living Crunch Impacting Retirement Savings

A new poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) found that 81 percent of people are now more concerned about paying for basic necessities like groceries, rent and their mortgage, than saving for retirement. The poll also found 44 percent said the high cost of living is hindering them from starting to save for retirement. Although individuals and families are living in a difficult economic environment, FSRA is urging consumers to prepare for the future and learn...

February 7, 2024
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02Feb

UK. One in four have stopped paying into their pensions

Almost two in five pension investors have stopped contributions or cut back on payments in the past five years, new research from wealth manager Investec Wealth & Investment has revealed. The nationwide study found a quarter have stopped paying into their pensions altogether, while another 12% have dramatically or slightly reduced monthly contributions. One of the primary reasons given was the cost-of-living crisis, followed by moving jobs or receiving a pay cut. Investec estimates the average amount of lost contributions adds up...

February 2, 2024
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02Feb

Climate Polarization and Green Investment

By Anders Anderson & David T. Robinson We build a nationally representative sample of retirement savers in Sweden to study how asymmetric updating of beliefs about climate change affects investment decisions. After the intense heat wave of 2018, respondents in regions dominated by a right-wing, anti-climate party grow less concerned about climate change, while respondents outside these regions grow more concerned. Those growing more concerned rebalance their retirement portfolios toward climate-friendly mutual funds; those growing less concerned rebalance out of...

February 2, 2024
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01Feb

Kenya. Counties owe pension schemes Sh41.2bn – Government Workers Union

Kenya County Government Workers Union has decried continued non-remittance of pension funds by devolved units, stating that the debts currently stand at Sh41.2 billion. Secretary General Roba Duba regretted that counties have been opting to pay “urgent” debts over remitting pension dues. Addressing a press conference in Nairobi, Duba said the union is going to petition the National Treasury to look at ways of addressing the matter urgently. “The issue of pension scheme management has not been given the necessary attention it...

February 1, 2024
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January 2024
30Jan

US. What’s the average 401(k) balance by age?

The amount of money you’ll need to retire comfortably depends on several factors, such as where you plan to live and how much you plan to spend. But experts say it’s important to save for the future now — especially because one of the main advantages of 401(k) workplace retirement plans is that your money benefits from compound returns, growing via the financial markets over time. “The sooner 401(k) participants start to save, the more realistic their retirement goals will...

January 30, 2024
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25Jan

Savers at risk from UK’s pension ‘pot for life’ plan, industry leaders warn

Critics say government proposal for single, career-long retirement funds could leave individuals worse off A proposed shake-up of the UK’s pension market to give millions of workers the right to choose a retirement “pot for life” risks leaving savers worse off, industry leaders and unions have warned. In last year’s Autumn Statement economic plan, the government issued a call for evidence on a “lifetime provider” model, which would allow consumers to stick with one pension pot throughout their career. Currently employers are...

January 25, 2024
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24Jan

US. IRS Announces Modest Changes To Retirement Plan Contribution Limits

In response to the current inflationary environment, the Internal Revenue Service announced a modest increase in the maximum contribution limits for 401(k)s and Individual Retirement Accounts for 2024. This year, 401(k) savers can contribute a maximum of $23,000, marking an increase of over 2% from the $22,500 limit set for 2023. The new contribution limit, effective from January 1, 2024, applies to 401(k) plans, along with 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees. Despite being less...

January 24, 2024
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16Jan

Data Shows That Saving for Retirement Isn’t a Popular New Year’s Resolution. Here’s Why.

Now on the one hand, it's easy to see why a goal like paying off debt might trump funding a 401(k) or IRA. If you're staring at a credit card balance with a 20% interest rate attached to it, you're going to want to do your best to knock out that debt as soon as possible. Similarly, if you have no money (or little money) set aside for emergency expenses, then it's easy to see why you'd first work...

January 16, 2024
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08Jan

Romanian private pension funds’ assets up 31.4% y/y in 2023

Assets held by Romania's seven mandatory private pension funds in 2023 rose 31.4% to 126.7 billion lei ($27.87 billion) while the average yield climbed to a record high 17.94%, the industry's association said on Monday. The European Union member state overhauled its communist-era pension system in 2008, making it compulsory for working Romanians under 35 to contribute to a "second pillar" of private pension schemes as well as their state pension. Roughly 8.1 million Romanians contribute to the seven funds, which...

January 8, 2024
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05Jan

Kenya. State lost Sh67bn in irregular pension payments, audit shows

What you need to know: Sh21 billion was paid to 29,387 claimants with shared bank accounts. Sh44.07 billion was irregularly paid to 221,590 claimants with irregular and no tax PIN. Sh1.62 billion paid in lump sum to 962 claimants before their exit dates from public service. The government lost at least Sh67 billion in irregular payments made by the National Treasury’s pensions department, a recent audit by the Auditor-General revealed. The amount paid to undeserving cases is sufficient to construct enough...

January 5, 2024
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