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The Independent
4 days ago
- Business
- The Independent
How does Britain's pension predicament compare with other countries?
Liz Kendall announced this week that she is reviving the pension commission as the government tries to tackle what she described as a looming 'tsunami of pensioner poverty'. The work and pensions secretary said the government is setting out to 'tackle the barriers that stop too many saving in the first place' after her department found that people retiring in 2050 are on track to be poorer than those retiring today, expecting to get £800 less in private pension income. Currently, just 55 per cent of working age adults in the UK are contributing to a pension pot, and MPs have said that a UK-wide strategy is needed to address pensioner poverty. But the UK's pension dilemma is not unique. Countries across the world are grappling with similar looming crises, driven by a combination of factors including demographic shifts, low interest rates and economic instability. Here, the Independent takes a look at what action other governments are taking to stave off the impending crisis. United States In the United States, half of all private-sector workers are unable to get a retirement plan through their jobs, according to a survey published in June by Pew Charitable Trusts. The US's most common workplace retirement plan is a 401(k), which allows employees to voluntarily put money aside for retirement which is typically matched by their employers. The total employee and employer contributions to a 401(k) cannot exceed $70,000 per year. Around 27 per cent of Americans over the age of 59 have no savings to rely on in their retirement, according to a survey by financial services firm Credit Karma in 2023. Last week, the Wall Street Journal reported that the Trump administration was expected to sign an order that would open up 401(k)s to the private markets. It would order the US Labor Department and Securities and Exchange Commission to create guidance for employers on including private assets in 401(k) plans, which could, in turn, create more investment opportunities for them. Canada Currently, the key challenge for many countries remains the low rate of pension saving. More than half (59 per cent) of working Canadians do not believe they will have enough money to retire, according to a survey conducted this year by Canadian pension fund HOOPP, Healthcare of Ontario Pension Plan. However, Canada is tackling this through rate increases within their savings system. The government has expanded the Canada Pension Plan (CPP), a monthly benefit that replaces a percentage of a person's income after they retire. Between 2019 to 2025, it has increased the percentage of how much of a worker's earnings are replaced from 25 per cent to 33.33 per cent. It has also increased the maximum level of earnings protected by the CPP by 14 per cent over 2024 and 2025. Australia Australia is recognised as having one of the world's top pension schemes where employers are required to pay a percentage of their employees earnings into an account which that employee can then access once they have retired. As of this month, employers are now required to contribute 12 per cent to employees' retirement savings accounts, up from 11.5 per cent. They are also taking steps to close the gender pension pay gap with the Labor Government introducing a superannuation top up for parents taking time off to care for a newborn. The CityUK CEO Miles Celic said: 'total contributions will have to rise if we are to emulate the successes of, for example, Australia and Canada. 'This will involve difficult political choices alongside technical changes to policy and regulation.' France In 2023, French President Emmanuel Macron raised the age of retirement from 62 to 64, which sparked massive public backlash and protests. Macron's administration argued that the reform was essential to prevent long-term deficits in the pension system. At the time, Macron said he did not enjoy passing the reform but called it a necessity, saying 'the longer we wait, the more (the deficit) will deteriorate.' As well as increasing the age of retirement, France has also hiked the minimum contributory requirements by 2 per cent this year across all bands. The minimum contribution applies to retirement pensions under its Pension Insurance scheme. Germany In Germany, the retirement age is gradually being raised from 65 to 67. Like many governments across Europe, it is trying to reduce pressure on the pension system created by aging populations. Last year, it approved pension reform and its new government has set out a series of policies that include maintaining the amount paid to retirees each month - which is 48 per cent of the average monthly salary.
The Independent
5 days ago
- Business
- The Independent
How does Britain's pension predicament compare with other countries
Liz Kendall announced this week that she is reviving the pension commission as the government tries to tackle what she described as a looming 'tsunami of pensioner poverty'. The work and pensions secretary said the government is setting out to 'tackle the barriers that stop too many saving in the first place' after her department found that people retiring in 2050 are on track to be poorer than those retiring today, expecting to get £800 less in private pension income. Currently, just 55 per cent of working age adults in the UK are contributing to a pension pot, and MPs have said that a UK-wide strategy is needed to address pensioner poverty. But the UK's pension dilemma is not unique. Countries across the world are grappling with similar looming crises, driven by a combination of factors including demographic shifts, low interest rates and economic instability. Here, the Independent takes a look at what action other governments are taking to stave off the impending crisis. United States In the United States, half of all private-sector workers are unable to get a retirement plan through their jobs, according to a survey published in June by Pew Charitable Trusts. The US's most common workplace retirement plan is a 401(k), which allows employees to voluntarily put money aside for retirement which is typically matched by their employers. The total employee and employer contributions to a 401(k) cannot exceed $70,000 per year. Around 27 per cent of Americans over the age of 59 have no savings to rely on in their retirement, according to a survey by financial services firm Credit Karma in 2023. Last week, the Wall Street Journal reported that the Trump administration was expected to sign an order that would open up 401(k)s to the private markets. It would order the US Labor Department and Securities and Exchange Commission to create guidance for employers on including private assets in 401(k) plans, which could, in turn, create more investment opportunities for them. Canada Currently, the key challenge for many countries remains the low rate of pension saving. More than half (59 per cent) of working Canadians do not believe they will have enough money to retire, according to a survey conducted this year by Canadian pension fund HOOPP, Healthcare of Ontario Pension Plan. However, Canada is tackling this through rate increases within their savings system. The government has expanded the Canada Pension Plan (CPP), a monthly benefit that replaces a percentage of a person's income after they retire. Between 2019 to 2025, it has increased the percentage of how much of a worker's earnings are replaced from 25 per cent to 33.33 per cent. It has also increased the maximum level of earnings protected by the CPP by 14 per cent over 2024 and 2025. Australia Australia is recognised as having one of the world's top pension schemes where employers are required to pay a percentage of their employees earnings into an account which that employee can then access once they have retired. As of this month, employers are now required to contribute 12 per cent to employees' retirement savings accounts, up from 11.5 per cent. They are also taking steps to close the gender pension pay gap with the Labor Government introducing a superannuation top up for parents taking time off to care for a newborn. The CityUK CEO Miles Celic said: 'total contributions will have to rise if we are to emulate the successes of, for example, Australia and Canada. 'This will involve difficult political choices alongside technical changes to policy and regulation.' France In 2023, French President Emmanuel Macron raised the age of retirement from 62 to 64, which sparked massive public backlash and protests. Macron's administration argued that the reform was essential to prevent long-term deficits in the pension system. At the time, Macron said he did not enjoy passing the reform but called it a necessity, saying 'the longer we wait, the more (the deficit) will deteriorate.' As well as increasing the age of retirement, France has also hiked the minimum contributory requirements by 2 per cent this year across all bands. The minimum contribution applies to retirement pensions under its Pension Insurance scheme. In Germany, the retirement age is gradually being raised from 65 to 67. Like many governments across Europe, it is trying to reduce pressure on the pension system created by aging populations. Last year, it approved pension reform and its new government has set out a series of policies that include maintaining the amount paid to retirees each month - which is 48 per cent of the average monthly salary.
Malaysian Reserve
16-07-2025
- Business
- Malaysian Reserve
Keeping the Lights on in the Age of AI
The Pew Charitable Trusts releases a new podcast episode on AI and energy demand WASHINGTON, July 16, 2025 /PRNewswire/ — New artificial intelligence data centers and increasing household energy use throughout the United States are stressing the nation's aging electric grid, notes Maureen Quinlan of The Pew Charitable Trusts' energy modernization project. She invites the public to learn more by listening to Pew's 'After the Fact,' podcast. The program recently traveled to Houston—the epicenter of the U.S. power industry—to talk with experts, journalists, and electricity providers about why investments in modernizing the grid are necessary for preventing higher energy bills for consumers, or worse, blackouts that leave communities in the dark. The episode also explores how innovative solutions such as tapping into battery storage and microgrids could connect nearly 2,600 gigawatts of alternative energy capacity to the grid, which would double the nation's available power supply. 'After the Fact' episode guests include: Carter Harms, officer, energy modernization project, The Pew Charitable Trusts Pat Wood III, CEO, Hunt Energy, and member, Pew Distributed Energy Resources Advisory Council Jennifer Hiller, energy reporter, The Wall Street Journal Mark Parsons, senior vice president and head of Texas consumer energy, NRG Energy Jim Nye, chief product officer at Vivint Smart Home, NRG Energy For more information, visit Energy Modernization | The Pew Charitable Trusts ( Contact: Matt Herbert, communications officer, mherbert@ 605-759-8911
Forbes
03-07-2025
- Business
- Forbes
Church-Owned Land Could Help Fill Affordability Gap
A rendering of the lobby at Maxwell Downtown Brooklyn, a new residential high-rise being built on ... More Archdiocese of Brooklyn land. Some 40% of the units at Maxwell Downtown Brooklyn are designated affordable. According to a survey for the Pew Charitable Trusts conducted last September, a majority of Americans back a range of zoning initiatives that would increase housing availability and affordability. Such policies will be necessary to address the spectacular shortage of approximately 4 to 7 million homes nationwide. One solution could be founded on utilization of unused and underused land owned by churches and religious groups. Local governments and real estate developers have forged partnerships with faith-based organizations that own a total of 2.6 million acres of land across the U.S. It's part of a new movement called YIGBY (Yes in God's Backyard) that could create more than 800,000 new housing units. The effort has gained legislative traction in states as diverse as Virginia, New York, California and Colorado. Among hurdles facing those who would like to build new affordable communities is a mountain of red tape dictating what and where new properties can be built. This includes restrictive land-use covenants and zoning ordinances. 'In the midst of today's economic downturn and heightened partisanship, tapping into creative partnerships with public, private and civic entities is essential to solving the housing availability and accessibility [issue] 'At the cornerstone of these efforts stands faith-based and religious institutions, which own 2.6 million acres of land across the country, but are often unclear on how to unlock the potential of this real estate. The Northview Housing Development exemplifies how religious organizations, developers and municipalities can unite under shared values to spark responsible development and create much-needed housing.' When complete, Northview will feature 254 workforce residences to be offered to working and active seniors in North Davidson County, Nashville. 'By partnering with Born Again Church and Urban Campus and Core to construct this new living environment on the church's campus, we are not only expanding housing access but uplifting North Nashville's livability and cultural foundation,' Nicholson says. Borough of churches It makes sense church-owned land has assisted creation of affordable housing in Brooklyn, N.Y. After all, Brooklyn has been nicknamed the Borough of Churches since the 19th Century, owing to the many churches and religious institutions in the borough. The heart of Downtown Brooklyn is the site of Maxwell Downtown Brooklyn, a 40-story mixed-income high-rise built on land owned by The Archdiocese of Brooklyn by The Michaels Organization through a partnership with Triangle Equities. To be developed on the stie of the ministries' former office building, Maxwell Downtown Brooklyn will designate 40% of the building's units as affordable. Plans call for the residential tower to be complemented by a 20,000-square-foot community ministry center for the St. Boniface Parish. Amenities offered at the building will include 24-hour concierge, community kitchen, fitness center and indoor-outdoor rooftop lounge. 'As a staple of the Downtown Brooklyn community for over 150 years, the church cares deeply about the neighborhood, working with our team to ensure that the community's needs are being met by this development beyond housing,' says Brett Goldman, executive vice president of leasing for Triangle Equities. 'It was truly a privilege to partner with the church to develop its new space within the Maxwell as it continues to serve the residents of Downtown Brooklyn.' Rock solid Another example of the phenomenon is Village at Solid Rock, a 77-unit affordable development in Colorado Springs, Colo., where rents extend from $700 to $1,400 a month, according to renters' household incomes. Being developed through a partnership between Commonwealth Development Corp. and Solid Rock Christian Center, Villages at Solid Rock will offer residents access to a playground and fitness center as well as services to include homework help, financial literacy education, job search and family living skills delivered by property manager Greccio Housing.
Yahoo
28-06-2025
- Business
- Yahoo
Half of all private-sector workers lack access to a retirement plan
Americans are continually encouraged to sock away money in a 401(k) or other retirement plan to ensure a comfortable, if not cushy, life in their later years. Yet about half of all U.S. workers in the private sector lack access to an employer-sponsored retirement plan, a huge obstacle in building enough wealth to retire, a recent study finds. About 56 million workers at businesses across the U.S. are unable to save via a retirement plan through their jobs, according to the analysis from the Pew Charitable Trusts. And while these employees can in principle save money on their own, many are forced to prioritize putting food on the table and paying the bills in the present over building a nest egg for the future, the study found. The findings underscore the widening divide between the retirement haves and have-nots, with almost 30% of Americans over age 59 lacking any savings to fall back on when they stop working. Employer-sponsored accounts like 401(k)s can help workers save because the money is taken out of paychecks automatically on a pre-tax basis, while many employers also provide a company match, which helps boost savings. "Deeply unequal" "Pew's findings confirm what we've known for years: America's retirement system is deeply unequal," retirement expert Teresa Ghilarducci, a labor economist and professor at the New School for Social Research, told CBS MoneyWatch. She added, "Nearly half of private sector workers — 56 million people — lack access to workplace retirement plans. When we include gig, cash and many public-sector workers, the number grows to a staggering 83 million. That's not a gap — it's a crisis." About 70% of all U.S. retirement assets are held in employer-sponsored defined contribution plans or defined benefit plans, including 401(k)s and pensions, as well as in government-sponsored plans, the Congressional Research Service found in a 2023 analysis. The remainder is tucked away in individual retirement accounts, or IRAs. While it's possible to save for retirement without a 401(k), many workers without access to these plans said they faced barriers to building wealth, the Pew survey found. For instance, one-third of workers without access to an employer-sponsored retirement account said they didn't have any money left over after the end of the month. "To build wealth and achieve financial security, individuals and families need a convenient and effective way to accumulate assets," Pew noted in its analysis. "Research shows that individuals are 15 times more likely to save for retirement if money is deducted automatically from their paychecks." Other researchers have highlighted the gaping holes in the American retirement system. For example, one 2023 analysis from the Economic Innovation Group found that 70% of low-income workers, or those earning $37,000 or less, lack employer-sponsored plans. Creaking Social Security system While financial gurus often exhort Americans to prepare for the time they can no longer work, the Pew research makes clear that people without access to a retirement plan face significant hurdles to achieving financial security, Ghilarducci noted. "What the Pew report confirms, and what we experts knew for years, is that saving for retirement isn't much about personal responsibility as it is about access," she said. Ghilarducci added, "Without a workplace plan, even the most disciplined and financially educated worker faces structural disadvantages for saving." The Pew research underscores that millions of Americans will approach their retirement years reliant on Social Security as their primary — or even only — source of income in old age. At the same time, the Social Security program is on track to deplete its trust funds by 2034, one year sooner than previously forecast. At that point, roughly 70 million Social Security recipients would see their monthly benefits cut by about 20%. That would likely create financial hardship for the roughly 40% of Social Security beneficiaries who today rely on the program as their sole source of income. Although lawmakers still have time overhaul the program to strengthen its finances, Congress has yet to take steps to shore up Social Security. "The Pew report is a wake-up call," Ghilarducci said. "If Congress fails to act, the people most harmed are those who can least afford it — workers without retirement accounts and pensions, gig workers, and those earning low wages." Hegseth slams Iran strikes initial assessment that contradicts Trump's take Young Cuban girl asks Trump to lift travel ban stopping her from joining mom in U.S. Jeff Bezos and Lauren Sánchez set for star-studded wedding in Venice Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
