South Africa

Details

  • Industry: Financial Services
  • Type: Business and industry issue
  • Date: 2011/12/05

Financial Services

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Frontiers in Finance - November 2011 

Increasing life expectancy coupled with a proportionately smaller working-age population around the world is creating challenges for maintaining unfunded social security and defined benefit (DB) pensions in many countries. In addition, companies with DB schemes are struggling with funding shortfalls due to poor investment performance.
Frontiers in Finance
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The levers available to policy makers and employers to tackle the long-term pension funding issue often have the combined effect of increasing individual and employer contributions, increasing retirement age and reducing pension payouts.

 

This publication looks at the growth in pension assets and the shift towards defined contribution (DC) pensions. The success of this approach, combined with the challenges associated with unfunded and DB schemes, is making DC pensions an attractive solution in a growing number of countries.