Global Pension News

EU suggests raising retirement age to 70

admin — Wed, 07 Jul 2010 06:56:54 +0000

The European Union’s executive says Europeans should not retire before 70 to save cash-strapped state pension funds.

In a paper to be published Wednesday, the European Commission says four workers’ contributions to state pensions currently help support two retirees. Source

FSA ready to crack down on pension rebate deals

admin — Wed, 07 Jul 2010 06:55:57 +0000

The FSA has signalled it will take a hard line on corporate advisers who have been splitting commission on group pensions with the sponsoring employer.

In April, Money Marketing flagged up concerns that some IFAs were rebating commission to employers at the expense of scheme members who face higher charges. Source

Sweden piles into hedge funds

admin — Wed, 07 Jul 2010 06:54:18 +0000

One of the largest Swedish state pension schemes is to increase its holdings in hedge funds dramatically as investors look to reinvigorate performance and alternative managers have redoubled their efforts to win over institutional investors.

AP1, the first AP fund, which contributes to the Swedish state pension system, has begun searching for hedge funds to manage up to Skr14.4bn (€1.5bn) of its Skr202.4bn in assets, according to a request for proposals on its website yesterday. Source

Norway’s Pension Fund to Boost Investments in Asia

admin — Wed, 07 Jul 2010 06:50:55 +0000

Norway’s sovereign wealth fund, the world’s second largest, will increase investments in Asia, as the region leads the global economic recovery, said Norges Bank Governor Svein Gjedrem.

The fund is currently underweight in Asia, said Gjedrem, who is in Singapore as part of yesterday’s opening of Norges Bank Investment Management’s second Asian office. He declined to say how much more investments the fund will make in the region. The central bank’s asset management unit already has an office in Shanghai. Source

Japan public pension wants one fund

admin — Wed, 07 Jul 2010 06:49:13 +0000

The head of Japan’s public pension fund on Tuesday rejected a proposal to split the $1.37 trillion fund in two in an attempt to achieve higher returns, saying such a move would be inappropriate and inefficient.

Splitting the Government Pension Investment Fund (GPIF), the world’s largest, into two — one for safe assets and one seeking higher returns — was suggested by a government report last week. Source

Pension funds face ‘£100bn deficit’

admin — Wed, 07 Jul 2010 06:38:37 +0000

The funding shortfall faced by the UK’s biggest pension schemes has soared to £100 billion and looks set to get worse during the coming year, research has suggested.

The 200 largest defined benefit pensions, including final salary schemes, had a deficit of £100 billion at the end of June, up from £88 billion in May, according to consultancy firm Aon Consulting. Source

Australian Pension Managers Risk Fee Cuts, Bowen Says

admin — Wed, 07 Jul 2010 06:37:36 +0000

Australia’s pension industry will need to compete for a smaller fee pool if lawmakers implement a new standardized fund recommended by a government-commissioned review, Superannuation Minister Chris Bowen said.

The new option, called MySuper, may cut fees savers pay to asset managers by 40 percent, helping the average worker retire with an extra A$40,000 ($33,700), according to the study of the A$1.1 trillion pension system overseen by Jeremy Cooper, former deputy chairman of Australia’s markets regulator. Source

Peru’s private pension funds

admin — Wed, 07 Jul 2010 06:35:12 +0000

Peru’s private pension funds have set an ambitious goal of doubling the volume of their assets under management over the next six years.

According to the country’s industry association, this view could well prove to be conservative if the current rate of growth continues. Since its creation sixteen years ago, the private pension industry has been developing steadily in one of the fastest growing countries in Latin America. If things continue to work by the book, the assets managed by the four companies that operate in the system should reach US$50bn by 2016, up from the current $26bn. Source

Will Britons seek equity release plans as pension contributions decline?

admin — Wed, 07 Jul 2010 06:32:48 +0000

The amount of money being paid into pension funds by UK workers has fallen, according to a new report. This could inspire a number of people aged over 55 years to consider using the value of their home to boost their retirement finances through a lifetime mortgage.

According to new figures from the Office for National Statistics (ONS), £10.9 billion was contributed to the UK’s self-administered pension funds in the first three months of 2010. Source

Different ring-fencing rules could hinder cross-border pensions

admin — Wed, 07 Jul 2010 06:31:13 +0000

The safeguards expected from ring-fencing pension assets may not work as expected in certain situations or countries, raising potential risks for cross-border pension provision, CEIOPS has warned.

In a supplement to its initial review of key aspects of the implementation of the Institutions for Occupational Retirement Provision (IORP) directive, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) concluded that ring-fencing in IORPS was a “subjective area”, as countries can take different approaches to ring-fencing. Source