November 2020

16Nov

Chile’s famed pensions system faces an existential crisis

Chile’s celebrated $200bn private pensions system has served as a model for dozens of emerging markets since it was introduced in the 1980s. Now, it faces an existential crisis as public support for the model fades and populist politicians allow savers to withdraw funds during the coronavirus crisis. The lower house of congress voted to allow Chileans to withdraw another 10 per cent of their pension funds last week, following a similar measure in July that saw withdrawals of some...

November 16, 2020
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16Nov

Zimbabwe. Retirees Watch Pensions Evaporate Amid Currency Chaos

Employees paid into their pensions for decades. By the time they retired, much of that money had disappeared. The line forms early outside a local bank in Harare. As the sun rises over Zimbabwe’s capital city, the crowd begins to sweat. Men with knobkerries, a kind of walking stick, and women adorned with headscarves lean on the bank’s walls. Some collapse on the stairs, tired and waiting. Always waiting. Every month, these pensioners stand in an hours-long line to collect...

November 16, 2020
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13Nov

The $75 Billion UN Pension Fund: Kicking Reforms Down the Road

A new governance study has confirmed what many United Nations Joint Staff Pension Fund observers have long surmised: there are significant variances between the fund’s own operations and best practices and those of pension funds elsewhere. The areas reviewed by Mosaic Governance Advisors, who prepared the study, include standards of professional and ethical conduct, conflicts of interest and oversight of culture. There were certainly clues as to problems: two internal audits conducted by the UN Office of Internal Oversight...

November 13, 2020
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10Nov

UK. Pension professionals call for TPR to focus on covenant sustainability amid Covid-19

The majority (67 per cent) of pension professions believe that The Pensions Regulator (TPR) should adjust its 'tougher' approach to focus on the sustainable growth of scheme sponsors amid the economic impact of Covid-19, according to a survey from Herbert Smith Freehills. The poll, undertaken during a recent webinar, revealed that just 21 per cent thought that the regulator’s existing 'clearer, quicker, tougher' approach, initially adopted in light of recent high-profile corporate failures, should be maintained in the current...

November 10, 2020
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04Nov

Thailand. NSF aims to provide sustainable pensions for all

The National Savings Fund (NSF) targets a 10-year return of at least 3% for long-term investment in order to provide fund members with sustainable pensions. The voluntary retirement savings fund targets informal workers, and currently holds investments totalling 8 billion baht. Since its inauguration in August 2015, the NSF has registered an average return of 3%, with last year's return at 4.4%, said NSF secretary-general Jaruluck Ruengsuwan. Year-to-date return is 1.6% because of the current domestic and international economic...

November 4, 2020
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October 2020

20Oct

These Are the World’s Best (and Worst) Pension Systems in 2020

The Netherlands and Denmark have cemented their positions as having the best pension systems in the world, even as other countries falter during the Covid-19 pandemic, according to an annual global survey. Read also Pandemic puts pressure on global pensions The countries again took the top two slots in the Mercer CFA Institute Global Pension Index published Tuesday, drawing praise for holding their nerve and not allowing citizens to drain their accounts during the crisis. Read also Asia managers set...

October 20, 2020
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15Oct

5 retirement security risks that 2020 made worse

Retirement security was already on shaky ground when the calendar turned to January 1, ushering in a year of unprecedented and unexpected challenges that have compounded threats to global retirement security. According to Natixis Investment Managers’ 9th annual Global Retirement Index, the challenges of 2020 have disrupted financial markets, caused widespread unemployment and demanded urgent response from policy-makers, all of which could have long-reaching impacts on retirement security. The goal of the index is to provide an objective tool for...

October 15, 2020
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01Oct

UK. Warning sounded as 42% of pensions raided at ‘unsustainable’ levels

Savers have been warned they could face trouble in the future as the regulator found 42 per cent were taking more than 8 per cent from their pensions each year. Read also UK. PensionBee and Plaid team up to call for ‘open pensions’ Latest data on the retirement income market from the Financial Conduct Authority, published yesterday (September 29), found savers with smaller pension pots, typically worth between £10,000 and £100,000, were particularly susceptible to high withdrawal rates. Read also...

October 1, 2020
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August 2020

28Aug

Pension System in Guinea Bissau: Key Challenges and Prospects for the Future

By Philippe Auffret The government of Guinea Bissau is considering implementing the pension fund included in the 2015 Budget Law. It requested a technical assistance from the World Bank to conduct an initial diagnostic of the pension system with a focus on the public service pension scheme. The objective of this note is an initial step to respond to this request. The analysis shows that it is not recommendable for Guinea Bissau to set up a pension fund for the...

August 28, 2020
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July 2020
03Jul

Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement

By David A Wise, Courtney C Coile, Kevin Milligan Even as life expectancy in many countries has continued to increase, social security and similar government programs can provide strong incentives for workers to leave the labor force when they reach the age of eligibility for benefits. Disability insurance programs can also play a significant role in the departure of older workers from the labor force, with many individuals in some countries relying on disability insurance until they are able...

July 3, 2020
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