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Pressure builds for passive pension management in Ireland
Wed, Apr 25, 2012
The U.S. isn’t the only country where retirement plan fees are coming under unprecedented scrutiny. Take Ireland...
International
Investment opportunity in China?
Tue, Apr 24, 2012
Western investors shouldn't assume that they have no shot at managing China’s pension assets, according to a news report in IPE.com.
16% of Briton retirees will have nothing but state pension: Prudential plc
Wed, Apr 18, 2012
People retiring this year in the Midlands are the most likely in the UK to rely on the State Pension (40%). This compares with a quarter (28%) of those in Scotland.
‘Pullback from pure DC’ predicted in UK
Tue, Apr 10, 2012
Current DC arrangements in the UK are so inadequate, one official said, that employers will eventually find their workforce dominated by workers in their 70s or 80s who can't retire, and whom employers can't force to retire.
Solvency II’s discount rate would hurt FTSE 100 pensions: Deloitte survey
Tue, Apr 03, 2012
Using a risk-free rate to estimate pension asset growth would increase pension under-fundedness by 20% to 50%, Deloitte survey shows.
Dissolve Solvency II's capital requirements?
Wed, Mar 07, 2012
The Dutch Social Affairs minister, a phalanx of pension-sponsoring industry associations, and European insurers are all protesting the stringent capital requirements proposed under Solvency II, the regulatory regime that would harmonize Europe's insurance standards.
‘Toxic’ annuity market exists in UK: Report
Tue, Feb 07, 2012
Under the current system, many new retirees from employer-sponsored plans fail to shop around for the best income annuity.
RMB seen as third reserve currency, after dollar and euro
Tue, Jan 24, 2012
Holding RMB is important for investors who have global aggregate portfolios or diversified global bond portfolios, said Jim McCaughan, CEO of Principal Global Investors.
Canada’s Annuity Issuers Protect their Turf
Wed, Jan 04, 2012
The Bank of Montreal will halt new sales of its BMO Lifetime Cash Flow, a retirement income product that Canadian insurers said worked a bit too much like a variable annuity. The Canadian finance minister agreed.
Dollar’s woes could boost global and emerging market debt: BNY Mellon
Wed, Nov 30, 2011
The dollar's share of global currency reserves has declined over the last 10 years as emerging markets rely less on external debt and move from fixed to floating exchange rates, a new report says.
Changing Money
Sun, Nov 13, 2011
On a recent visit to Shanghai, our contributor found that a dollar doesn't command as much respect on the streets of China as it once did.
From the UK, ideas for better outcomes for DC participants
Tue, Oct 11, 2011
Would gradual annuitization from age 65 to 75 be better for DC plan participants in the UK than gradually switching from equities to government bonds from age 55 to 65?
Change of government shapes Danish pension reform
Wed, Sep 21, 2011
Danish political factions are debating limits on early retirement, a ceiling on tax-deferred plan contributions, and a tax on stock transactions to offset the impact of an aging society.
Leakage from retirement plans plagues South Africa
Wed, Sep 07, 2011
To promote retirement savings and drive down the cost of retail annuities, South Africa's National Treasury is considering the creation of a public, low-cost "Retail Bond-backed Retirement Annuity."
Pensions feel the risks of “de-risking”
Wed, Sep 07, 2011
In July, the combined funding deficits of the 100 largest U.S. DB plans rose by $68 billion, to $254 billion, said Reuters, citing the Milliman Pension Fund Index.
Why the U.S. had a crisis but Canada didn’t
Wed, Sep 07, 2011
Two Rutgers professors explain how fragmentation of the banking system in the U.S. has led to a long series of panics here, of which the Great Recession was only the latest. Canada's financial history has been quieter.
Actuaries Without Borders... Why Not?
Tue, Aug 30, 2011
Experts from Aegon Global Pensions, De Nederlandsche Bank and other Dutch pension and financial consulting firms are helping the Amsterdam-based P&D Network plant the seeds for "micropension" programs in the developing world. The final part of a two-part series.
Broad markets conducive to active management, says Dutch firm
Mon, Aug 29, 2011
On average, active managers will underperform a portfolio of investable index funds. But 20-40% of managers show persistent outperformance, says Dutch asset manager Robeco.
Many health-impaired Britons overpay for life annuities—Towers Watson
Sun, Aug 28, 2011
Many people in the U.K. buy straight life annuities from their plan provider instead of using the Open Market Option to find out if they qualify for a higher-paying "enhanced" or "impaired annuity."
Micro-Pensions in Central America
Tue, Aug 23, 2011
You've heard of micro-credit: those mini-loans to female entrepreneurs in emerging markets. Now a micro-pension movement is underway, and one of the first pilot projects starts next month in Guatemala, Honduras and Nicaragua. Part I of a two-part article.
East and West Approach Retirement from Opposite Directions
Mon, Aug 15, 2011
Starting from a level of great wealth, North Americans and Europeans feel a sense of decline, while Asians, starting from a level of deep poverty, feel a sense of upward mobility and optimism, according to a recent global survey by HSBC.
Canada, far smaller than the U.S., has smaller age-related economic challenges
Wed, Jul 27, 2011
Our neighbor to the north spends only 10% of its GDP on health care, compared to 16% in the U.S., and its hospitality towards immigrants should help ease labor shortages as its Boomers retires.
In Italy, annuity demand correlates with wealth and education
Wed, Jun 08, 2011
Italians were asked: ‘Imagine you are 65-years old and will receive an inflation-adjusted pension of €1,000 a month. Would you give up that half of that pension in exchange for an immediate lump sum of €60,000? Of €80,000? Of €100,000?’
At Your Service: Courting the Affluent Tennis Fan
Tue, Jun 07, 2011
Prudential Financial, Raymond James, ING, Fidelity Investments and E*Trade all advertised during the French Open final between Rafael Nadal (above) and Roger Federer on NBC TV last Sunday--all vying for the "elite demographic" that follows tennis.
What’s Up Down Under? SPIA Sales.
Wed, May 11, 2011
An ad campaign featuring the 1967 Buffalo Springfield classic, "For What It's Worth," and other factors are helping drive higher income annuity sales in Australia for Challenger Ltd. Their latest product offers liquidity in the first 15 years.
Financial system a 'con game,' says economist
Wed, Apr 20, 2011
An ideal pension system would be based on an annual contribution of 8% of wages to a government-run index fund, said Laurence Kotlikoff of Boston University.
The Bankers Who Control the World
Mon, Apr 11, 2011
Some goldbugs have accused the Bank of International Settlements of engineering the 2008 financial crisis to subvert the dollar. This account of a visit to BIS' Swiss headquarters, first published in Harper's in 1983, has been updated for RIJ by the author.
China outlines Social Security Fund expansion
Wed, Mar 16, 2011
The SSF, which was established in 2000 and receives a statutory 10% of the proceeds of all IPOs by Chinese state-owned enterprises (SOEs), is the largest pension fund investor in China.
Pension Debate Roils Japan
Mon, Feb 28, 2011
In January, the ruling party suggested that the public pension should be funded with payroll deductions, and that there should be a taxpayer-funded guaranteed minimum benefit of ¥70,000 ($860) per month for the poor.
Big gender discrepancy in UK savings
Wed, Feb 09, 2011
British women have a median balance of just £9,100 ($14,620) in their defined contribution “pension pots,” while men have a median balance of £52,800 ($84,820).
Furor in Netherlands over cause of pension losses
Wed, Feb 09, 2011
A Dutch TV program accuses the country's pension fund managers of over-weighting equities for the past two decades.
“Impatience” helps explain failure to save, researchers say
Thu, Feb 03, 2011
When it comes to saving for retirement, the ability to delay gratification seems to matter as much or more than the ability to understand investment concepts.
JP Morgan Hedges U.K. Workers’ Longevity Risk
Thu, Feb 03, 2011
If the life expectancy of its pensioners improves at a greater rate than specified in the contract, the Pall UK Pension Fund receives an insurance payout from JP Morgan.
BMO 'Lifetime Cash Flow' Product Critiqued
Wed, Jan 26, 2011
Garth Bernard responds to last week's RIJ article on the Bank of Montreal's Lifetime Cash Flow product, saying the product has 'room for improvement.'
Poland’s pension makeover offers a cautionary tale
Wed, Jan 26, 2011
In the 1990s, Poland reformed its Social Security-type system and introduced personal accounts. Now they’ve got chaos.
BMO Offers Non-Insured Lifetime Income Product
Wed, Jan 19, 2011
The Bank of Montreal's Lifetime Cash Flow product pays out 6% of principal per year for life after a 10-year deferral period. After-tax principal is paid out tax-free for 15 years, followed by taxable payments.
No more compulsory annuities in U.K.
Wed, Dec 15, 2010
People with defined contribution pension accounts will no longer have to buy annuities by age 75, and may take out up to a years’ worth of funds before retirement.
UK pensioners brace for new retirement drawdown rules
Wed, Dec 08, 2010
Retirees will probably be allowed to spend their savings at the rate they wish as long as they have at least enough guaranteed income to keep themselves from needing public support in retirement.
Average Dutch Retirement Age Stays Level
Wed, Nov 24, 2010
The current minority government has agreed to increase the official retirement age to 66 in 2020, but has not yet passed any legislation.
UK’s National DC Plan Considers Investment Options
Wed, Nov 17, 2010
“We won't be investing in a single infrastructure fund, though, or a single commodities fund, or a single high-yield fund until we get bigger,” said Mark Fawcett, CEO of the National Employment Savings Trust.
Global Fund Flows on Pace for $850B in 2010
Thu, Nov 11, 2010
In the U.S., Strategic Insight expects 2010 full-year flows to stock and bond funds to hit $400 billion, including ETFs and funds underlying VAs.
U.K. To Raise Retirement Age, Implement National DC Plan
Thu, Oct 21, 2010
In a move that resembles the Obama administration's "auto-IRA" program for workers in companies that don't offer retirement plans, the British are hoping to jump-start middle-class savings with their National Employment Savings Trust.
Singapore Mandates Annuities
Thu, Oct 21, 2010
The government of this tiny Asian nation has confronted its collective longevity risk by requiring the purchase of annuities with defined contribution assets. Wharton pension expert Olivia Mitchell and colleagues have written a new paper about it.
Czech It Out: Pension Pains are Global
Wed, Apr 07, 2010
Age-related spending in the Czech Republic will be 23.4% of GDP by 2060, according to European Commission data.
New Public Pension Fund in UK Ponders Investment Strategies
Wed, Mar 31, 2010
Britain is developing a system of personal investment accounts targeted at low and middle-income workers who may or may not have a workplace savings plan.
Australians Want More Workplace Savings
Thu, Mar 25, 2010
After more than a decade of compulsory contributions, Australians have over AU$1.177 trillion in their state-sponsored defined contribution plan.
To Prevent Inflation, Australia Hikes Baseline Interest Rate
Wed, Nov 04, 2009
If the Australian economy continues to expand as expected, rates could return to “a more normal 5%” in the next year or two, one analyst said.
