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  #101  
Old 06-20-2016, 11:22 AM
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Good point.
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  #102  
Old 06-21-2016, 02:06 AM
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You can't really compare GDP percentages spent on social security type programs between countries without comparing population distributions. See populationpyramid.net

A large chunk of Canada and the US's lower spending is explained by age distributions and the paygo nature of the programs. It's also worth noting non-socialized transfer payments (children supporting their actual rather than metaphorical parents) and foregone consumption among seniors (and perhaps some level of increased saving among the working population) would result if SS benefits are cut to match contribution income. This is actually less of a financial issue than people realize and more of an issue of how social institutions should bend to challenges.

Personally, I think that the combination of age being a protected class in labor law and cuts in retirement income reducing people's ability to retire would be economically destructive. People are entitled to continue working so long as they can meet the job requirements, but putting a larger group of people in the position where they have to do this is problematic for younger workers, employers and the older workers themselves. The impact here is primarily macroeconomic rather than on the governmental budget though.
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  #103  
Old 07-06-2016, 06:11 PM
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SPAIN

https://mishtalk.com/2016/07/05/spai...-bust-in-2018/

Quote:
Spain’s Social Security system is expected to go broke by 2018.

In the US, concerns over such matters are virtually nonexistent.

But Spain cannot print Euros, and is already deep in the hole on meeting budget deficit targets.


Via translation from El Confidencial, Spain’s Social Security Reserve Fund Exhausted by 2018.

Quote:
The Social Security reserve fund will run out of money in 2018. The cause in bonus payments to pensioners, which consumes every six months (in December and July) over 8.5 billion euros. Revenue from social security contributions are not sufficient to meet the payment obligations.

Starting in 2018, only an extraordinary contribution by the State would make it possible for Social Security can meet its commitments.

The financial problems of Social Security are not a temporary problem. The government itself expects that this year the public pension system will register equivalent to 1.1 percent of GDP deficit (about 11 billion euros ), while in 2017 planned is an imbalance equivalent to 0.9% of GDP.

In 2016, revenues from social security contributions recorded an accumulated a deficit of 12.24% compared to expectations. The deviation is even higher than the already recorded in 2015.

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  #104  
Old 07-19-2016, 06:19 PM
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POLAND

http://www.bloomberg.com/news/articl...to-calm-market

Quote:
The last overhaul of the pension system walloped Poland’s stock market, but the former banker charged with overseeing a new revamp says he is confident he can avoid a repeat.
“One of our aims is to strengthen the Polish capital market and make the bourse more attractive for companies seeking debuts,” Pawel Borys, who heads the state-run Polish Development Fund, said in an interview last week. “That’s why we want to prepare regulations that will allow for a swift transition and will ensure positive net inflows to the market.”
It’s a tall order. The government’s plan, unveiled earlier this month, calls for upending the 139 billion-zloty ($35 billion) pension industry, which holds about a fifth of the equity on the Warsaw Stock Exchange. Already battered by fears the program would involve the state taking a big chunk of the assets, the market fell to five-month lows once it was announced, recovering only modestly since.
......
Too Tempting?
That’s the fear that’s dogged both the current reform and the previous one, conducted in 2014. Investors worry that the cash-strapped government will find meddling too tempting to resist. In the last overhaul, the government canceled the government bonds held by the pension funds -- 51 percent of their assets at the time -- to cut its debt load. Since the end of 2013, Warsaw’s main stock index has plummeted 43 percent in dollar terms, while emerging stocks dropped 13 percent.
The other risk this time is that all the portfolio shifts the plan envisions will swamp the Warsaw Stock market, where daily volume averages about 700 million zloty.
.....
The new plan, for which legislation hasn’t yet been drafted, calls for taking a quarter of current pension fund assets for the government. Those assets -- foreign stocks, local corporate debt as well as bank deposits -- will be transferred to the FRD, the government’s rainy-day fund. The remaining 75 percent -- mainly the pension funds’ holdings of local stocks -- will go into the individual accounts, to be managed by private investment companies.
Those managers are expected to sell some of those shares to diversify their holdings into other assets, but Borys says the overhaul plan includes provisions to generate more than enough new demand for shares to absorb the sales.
.....
A new retirement-savings scheme using payroll contributions -- encouraged by planned tax advantages -- is expected to generate as much as 5 billion zloty a year in inflows to the stock market, with that money going into the new individual accounts. On top of that, the FRD is also expected to put some of the money it gets into stocks. Borys said altogether, the plan would create as much as 15 billion zloty a year in new demand for bonds and shares.
To limit selling pressure, meanwhile, the plan mandates that any sales of stock from the individual accounts will have to be conducted gradually, over a period of 10 years. Borys says that will amount to about 3 billion to 4 billion zloty a year in sales of shares, a sum easily absorbed by the new demand he expects from the payroll contributions and the FRD’s equity purchases.
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  #105  
Old 07-19-2016, 06:20 PM
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IRELAND

http://www.irishtimes.com/business/w...able-1.2726038

Quote:
Leo Varadkar says State pension scheme is ‘unsustainable’
Minister for Social Protection favours workplace pensions with automatic opt-in

Minister for Social Protection Leo Varadkar has said the current State pension scheme is “unsustainable” . He has said that the State pension will still increase with inflation in the coming years, and that there are no plans to raise the pension age beyond 68.
However he said that reforms are needed to reduce reliance on the state pension as the sole source of income in retirement for many people.
Mr Varadkar was launching a consultation programme on a plan to reform the pension system, being overseen by the Pensions Authority.
.....
Ageing population
Mr Varadkar said more than half of Irish workers relied solely on the State pension and that had to be change due to our ageing population that is living longer.
“The key lesson from other countries is that you try to build a social consensus and social contract around it,” he said.
Chairperson of the Pensions Authority David Begg said he also approves of an opt-in pension system for employees, to reduce the reliance on the state pension.
“I would like to see something put in place where there is a definite requirement for people to put into the scheme, simply because if you don’t do that it will be very hard to get in place a system that will work for the future.
“My generation, the baby boomers, have reasonable level of coverage but younger people are going to find it extremely difficult. From a public policy point of view it is time to do something but ultimately it’s a matter for Government,” he said.
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  #106  
Old 07-28-2016, 06:55 PM
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UNITED KINGDOM
EARLY RETIREMENT

https://www.theguardian.com/money/20...ng-it-says-ppi

Quote:
Let people take state pension early or they'll risk missing it, says thinktank
Allowing people who have paid NI for 45 years to draw their pensions and retire early will help 250,000, research by Pensions Policy Institute suggests

People who have worked and paid national insurance (NI) for at least 45 years should be allowed to take their state pension early or risk missing it out on it entirely, the Pensions Policy Institute has argued.

In a research paper published on Wednesday, the thinktank claims such a move would enable up to 250,000 people to enjoy a much-needed retirement after decades of physically demanding, manual work – a retirement that many will be denied because they will die before they’re old enough to retire.

Increases in average life expectancy have led successive governments to raise the state pension age to 67 by 2028 – for men and women.

The paper, sponsored by Age UK, noted that, while most people will live to 67 and beyond, there are others – particularly men from deprived areas – who will be unfairly penalised by the change.

In Glasgow, the latest figures show that healthy life expectancy at birth – an estimate of how many years people might live in full health – is 55.9 years for men and 58.5 years for women – nearly 10 years below the current state pension age.

Those in manual work or with caring responsibilities who are most likely to be hard hit by state pension age increases, says the report.

Age UK is urging the government to fully consider the effect of extending working lives and has offered potential policies, which could mitigate the effects.

It has proposed allowing people with more than 45 years of NI contributions to receive their state pension early unreduced. These people are more likely to be in manual occupations, having started working straight after school. This option is already happening in Germany, it says.
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  #107  
Old 07-29-2016, 02:58 PM
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JAPAN
INVESTMENT RETURNS

http://www.bloomberg.com/news/articl...-stocks-tumble

Quote:
World’s Biggest Pension Fund Loses $51 Billion in Stock Rout

GPIF posts 3.8% investment loss for fiscal year ended March
GPIF should debate whether to seek new investments: Amundi

The world’s biggest pension fund posted the worst annual performance since the global financial crisis, with losses exacerbated by unfavorable currency moves and a foray into equity markets.

Japan’s $1.3 trillion Government Pension Investment Fund lost 3.8 percent in the year ended March 31, or 5.3 trillion yen ($51 billion), the retirement manager said Friday in Tokyo. That’s the biggest drop since the fiscal year ended March 31, 2009. GPIF lost 10.8 percent on domestic equities and 9.6 percent on shares in other markets, while Japanese bonds handed the fund a 4.1 percent gain.

The annual loss -- GPIF’s first since doubling its allocation to stocks and paring domestic bond holdings in October 2014 -- came during a volatile stint for markets. Japanese shares sank 13 percent in the year through March while the yen climbed 6.7 percent against the dollar, reducing returns from overseas investments. The only asset class to post a profit was local debt, which jumped in value as the Bank of Japan’s adoption of negative interest rates sent yields tumbling.
“The results are painful,” said Masahiro Ichikawa, a senior strategist at Sumitomo Mitsui Asset Management Co. in Tokyo. “Because it’s a pension fund, they need to have a long-term outlook, so I don’t think we can say yet that they took on too much risk. It was a harsh investment environment for most of us.”
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  #108  
Old 07-29-2016, 06:10 PM
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ONTARIO

http://www.theglobeandmail.com/news/...ticle31161047/

Quote:
Ontario spent $70-million to create provincial pension plan

Ontario spent $70 million preparing to create a provincial pension plan that won’t be needed because Ottawa and the other provinces agreed to enhance the CPP.

Finance Minister Charles Sousa says over $2 million will go for severance for the top six executives at the corporation the province set up for the Ontario Retirement Pension Plan.

Another $1.68 million in severance will go to 27 employees at the pension corporation, which will be wound down because of a June agreement to increase deductions and benefits under the Canada Pension Plan.

Sousa says Ontario’s first choice was always to enhance the CPP, but it proceeded with the provincial plan in case other provinces or the federal government continued to block a national agreement.

Critics of CPP enhancement warn that imposing additional contributions on workers and employers will hurt the economy, with the Canadian Federation of Independent Business predicting it will be “devastating” for small companies.

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  #109  
Old 08-01-2016, 12:19 PM
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JAPAN

http://www.bloomberg.com/news/articl...o-passive-ways

Quote:
Japan Pension Whale’s $52 Billion Loss Tied to Passive Ways

GPIF posts worst annual results since global financial crisis
Only about 20% of fund’s investments are actively managed

Friday was a big day for the world’s largest pension fund, which posted its worst annual loss since the financial crisis and disclosed individual equity holdings for the first time. The two may be connected.
QUICKTAKE
Japan’s Pension War
The list of domestic shares owned by Japan’s $1.3 trillion Government Pension Investment Fund hews closely to the benchmark Topix index, which isn’t that surprising for a fund where almost 80 percent of investments are passive. But it means that in market downturns like in the past year, GPIF will struggle to increase assets.
The fund recorded a 5.3 trillion yen ($52 billion) loss for the 12 months ended March, the largest decline in seven years. Japan stock holdings tumbled 10.8 percent. For Sumitomo Mitsui Asset Management Co., GPIF should branch out from hugging indexes.
“There’s more they can do,” said Masahiro Ichikawa, a senior strategist at the Tokyo-based money manager. “They should be more active with their currency hedging and their investments. They should also look to increase exposure to alternatives.”
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  #110  
Old 08-01-2016, 12:20 PM
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CHILE

http://buenosairesherald.com/article...ystem-in-chile

Quote:
Tens of thousands protest Pinochet-era private pension system in Chile

SANTIAGO — Some 150,000 people according to organizers — 50,000 according to the Chilean police — gathered in Chile’s capital Santiago yesterday in demonstrations that were replicated in dozens of cities across the country to protest against the country’s private pension system and its low payouts from an entity known as Pension Funds Administrators (AFP).

Under the slogan “No + AFP” (No more AFP) organizers brought together people of different ages, retirees and parents with their children to demonstrate their opposition to the existing model which they say they condemns the elderly to poverty.

In Valparaíso, the march ended up being dispersed with water cannons and tear gas by police, television footage showed mothers running with their children to escape the gas.
“Stop ransacking the people,” “Chile wants decent pensions for the elderly,” “We do not lack resources, we have too many thieves,” read some of the banners carreid by protesters in the main streets of Santiago.

Citizens are upset over the private pension system that has regularly paid out pensions under the minimum wage, currently set at just over US$380 a month.

The current model, which was introduced on a mandatory basis during the dictatorship of General Augusto Pinochet (1973-1990), requires workers to save 10 percent of their gross income monthly, which is accumulated in an individual account from where retirement funds are drawn. Although women can retire at age 60 and men at 65, it is not compulsary and most Chileans continue working to slightly increase their paltry pensions.
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