‘The Bailout State’ Explains the U.S. Money Mess
Over the past 50 years, the U.S. government has repeatedly used its deep financial resources to protect the interests of asset holders at the expense of wage earners, University...
International
Australia’s ‘Super’ DC program faces decumulation problem
'While superannuation funds have excelled at accumulating wealth, they have struggled to provide products that deliver reliable income streams throughout retirement,' warns a Jasper Forum spokesperson.
The case for affiliated reinsurance in the Cayman Islands
The Cayman Island's "legislative and regulatory regime is less prescriptive and therefore affords prospective Cayman reinsurers greater flexibility to propose a bespoke capital model to our regulator without being...
In the UK, private equity finds a NEST-ing ground
NEST has been at the forefront of UK’s auto-enrolled master trusts expansion into illiquid assets, but some doubted a private equity manager would work for a low expense ratio.
A ‘Cashback’ Pension-Building Card, from Germany
'The Vantikcard uses the 1% cashback as a kickstart into retirement savings and for customers to then save on top of the cashback,' a Vantik veteran said. Right: Vantik...
Denmark’s ‘Arnes’ can apply for early pensions
A new program, which acknowledges the physical toll of blue collar work, allows people to claim their state pensions up to three years earlier than the standard national pension...
Royal Mail adopts ‘Collective’ DC; NEST to hold private equity
Royal Mail is converting its defined benefit pension plan to Britain's first "collective defined contribution" plan or CDC. In other UK news, the National Employment Savings Trust, or NEST,...
China’s Bond Market: Too Big To Ignore
'At about $16 trillion in value, the Chinese market has become too big to ignore as it grows in bond indices and offers higher yields than in the other...
Britain passes landmark pension legislation
The legislation provides for the creation of collective defined contribution (CDC) schemes, which are hybrids of DC and defined benefit plans. It also boosts the powers of The Pensions...
Outlook brightens in Asia for private annuity sales: Cerulli
'The importance of annuities is expected to increase significantly, as many markets continue to encourage personal retirement savings,' said Ye Kangting, a Cerulli research analyst.
Equitable completes spin-off from AXA
Equitable Holdings started toward independence in May 2018 with an initial public offering on the New York Stock Exchange. In March 2019, AXA S.A. completed a secondary public offering...
Why high returns leave Dutch DB plans unhappy
'As the high returns are largely due to dropped interest rates, the rosy figures will in part disappear as soon as interest rates rise again,' said a Dutch pension...
France reforms retirement
The new defined contribution plans are expected to compete with traditional French savings products such as life insurance, bank savings accounts, and pensions. Asset managers Natixis, BNP Paribas and...
Wide but shallow: the impact of auto-enrollment in the UK
In British defined contribution plans, employer and employee contributions average a total of only 5.1% of salary per participant. By contrast, defined benefit (DB) plan members receive contributions totaling...
Germany struggles with defined contribution
Among low-income Germans, only 28% of those earning up to €2,500 ($2,804) a month were signed up for a workplace pension and just over half (52%) of those earning...
Why Capitalism Needs Populism
'If voters in small-town America succumb to despair and lose hope in the market economy, they will be vulnerable to the siren song of ethnic nationalism or full-bore socialism,...
Taken to the Cleaners, in Yehud
A better prime minister than Bibi Netanyahu would be Duke University behavioral economist Dan Ariely, said Aviram, who with his mother operates the laundry that I've frequented in...
Shekel by Shekel: How Israelis Save
For the last decade, Israeli workers have contributed to mandatory defined contribution savings plans at work and must convert at least part of their savings to a lifetime income...
Holy Annuities! RIJ Goes to Israel
If it’s winter in east-central Pennsylvania, then you can bet that RIJ’s virtual offices will be someplace where the weather is mild and the local retirement financing system promises...
Britain test-drives “sidecar” accounts in state-run DC plans
Plan contributions above the auto-enrollment minimum (currently 8% of salary) will overflow into the sidecar savings account until the sidecar balance reaches £1,000. Subsequent contributions go to the retirement...
