Latest news with #SocietyofActuaries
NZ Herald
20-06-2025
- Business
- NZ Herald
Alternative investments: Gardening offers more than just savings
Added to all that, you're presumably saving some money on food purchases, even after you allow for the garden centre buys. For some people – and I have to include myself – gardening is a chore. But you are clearly among the many who love it. Well done you! Other readers might come up with other ideas. Do 'rules' cover this? Q: Do retirement spending rules take into account the possibility of going into residential care, considering that quality accommodation can cost $10,000 per month? The Winz Residential Care Subsidy takes into account the income and assets of applicants, with the current threshold being $284,636. Any gifting in previous years is also scrutinised. A: Good point. Despite the fact that most people spend less as they go through retirement, many suddenly spend large amounts towards the end of their lives because they need care beyond what they can get in their own homes. The spending rules you're referring to are the ones discussed in this column in February and March this year. One is that, if you retire at 65, you can spend $100 a week for every $100,000 you have saved, and your savings will probably last your lifetime. The New Zealand Society of Actuaries has written a short report for non-experts on some other, similar rules. See the report at Do these take into account residential care costs or similar? Not specifically. Nonetheless, many people using one of the rules will have money available for such care. It depends on the age you retire, how long you live, how you invest your retirement savings and so on. The rules just give you a rough idea. How likely is it that you will go into residential care? A Society of Actuaries report says this: 'Around half of retirees, more likely to be female, are expected to spend some time in a residential care facility. The estimated likelihood that people aged 65 and over will use residential care at any time before they die has been projected to increase to 53% by 2040. 'Half of those age 65 and over are likely to die in residential care (or in an acute hospital setting, having been transferred from a residential care facility).' So the odds are pretty high. Ideally, you might set aside $10,000 a month for these expenses. For how many months? The society says, 'Retirees move into residential care on average aged 85 years, with [the] median stay 18 months.' If you're being conservative, make it two years. That brings that total to $240,000. If you are a couple, does it need to be twice that? In many cases, no. If you are the second partner to need care and you own your home, you can probably sell it to raise the money. And single people can of course also do that. Note, too, that if you set the money aside when you first retire, you will earn returns on that money over the years. Setting aside two-thirds or three-quarters of the total may well be enough. Still, this will not be possible for many people with lower savings. If that's you, you may be able to sell assets. Or, if you have a mortgage-free home, there are a couple more options: Get a reverse mortgage or home reversion – discussed recently in this column. You'll probably be able to access several hundred thousand dollars. Arrange to get the money gradually, as you need it, rather than in a lump sum. Move to a lower-priced home, which might be smaller or further from a central city. Or you could look into subdividing your land, or see if your council offers rates postponement – again written about in recent columns. If none of these works for you, use the Winz (Work and Income New Zealand) Residential Care Subsidy. As you say, there are asset and income limits for this. And you're correct, they will look into amounts you have given as gifts in recent years. You won't get as much choice of facility as those who pay their own way and you won't be in luxury surroundings. But you will be cared for. For more on this, see 'Banana oil' Q: A lot of what is said about retirement funds is banana oil. Life in most cases does not turn out as you plan. My wife and I are in our late 80s and have savings that would keep Prince Harry for a few years. My wife has a stroke; the hospital gave me 24 hours to find a rest home with full hospital care. I find a nice one and ask the manager how many pingers per month. A reasonable $9880, she says. Picking myself up off the floor, I say we will take it. My wife arrives by ambulance an hour later. She has been there now nine months. I go home, ring the government department and ask what home help is available to me now l'm home alone. He puts me on hold and rings the IRD. Comes back and says: 'Nice try, mister.' So from then on, any help I get is $35 to $45 per hour. So readers, how do your calculations look now? In most cases, you are going to need far more than you think. A: Gosh, a tough story. And a good example of what we're talking about in the Q&A above. At least you can afford your choice of care for your wife. This is one of those twists in life that can hit you hard. It's never easy. I do feel for you. A revised and updated edition of Mary Holm's book Rich Enough? A laid-back guide for every Kiwi. This is the final of three excerpts from Mary's revised and updated No 1-bestselling book Rich Enough? A laid-back guide for every Kiwi, published by HarperCollins Aotearoa New Zealand. The Stock Picking Game Earlier in the book, I mentioned that I taught a financial literacy course at the University of Auckland for five years, from 2009 to 2013. When I first planned the course, I realised that most of the students, fresh out of high school, wouldn't know much about the sharemarket. How could I give them an idea of what a share was? Out of that question was born the Stock Picking Game. At the start of the course, I gave the students one-page summaries from a stockbroker of about 25 New Zealand shares. Each student had to choose a share they thought would perform well over the 14 weeks of the course. I also assigned each student another share. Then I divided the 25 shares into five 'portfolios', or groups of shares, and each student was assigned to a portfolio. So, at the beginning, each student had: their chosen share, my chosen share for them, and a portfolio of five shares. Then we set it all aside until the end of the course. Before I go any further, many of you will be saying, 'Hang on a minute. You've been telling us shares are a 10-year-plus investment. Now you've got students 'investing' for 14 weeks!' Good point – a point I made repeatedly to the students. And, if I'm honest, I would have preferred it if the New Zealand sharemarket had fallen during those 14 weeks, to underline how risky short-term investing can be. No such luck – except in 2010, when 16 out of the 25 shares lost value, even after including dividends. In the other four years, the average return (including dividends) ranged from 6% to 15% – very healthy returns for just three months. Thank goodness in most years I could refer back to unhappy 2010! And in every year there were several shares that lost value, so that helped. But on we went. There was lots else for the students to learn. Some of the lessons: Most students were lousy stock pickers. In 2011, for example, the most popular share was Fletcher Building, probably because students expected it to benefit from the recent Canterbury earthquakes. But in the 14 weeks, its performance ranked 20th out of 25. And the second-most popular, Air New Zealand, came dead last. Meanwhile, the top-performing share, NZX, which was chosen by just three students out of 400, produced an astonishing best return of 55% in just three months. Then in 2013, the third-to-last share in popularity, Xero, came top with an even more astonishing return of 70%. Of course, the quality of the student choices wasn't always that bad. But most years, the most popular shares tended to perform worse than the least popular ones. Information affects share prices more or less immediately, and amateurs can't benefit from it after that. The popularity of Fletcher Building – because of the earthquakes – illustrates that. By the time the students were picking their stock, in March 2011, the experts had long since calculated how much that company was likely to benefit from the quakes rebuild. That information had already pushed up the share price. Don't judge a share by its short-term return. Despite the fact that the students 'invested' for only three months, we also looked at the longer-term performances of the shares. In 2011, for instance, while Fletcher Building and Air New Zealand did poorly over the three months, Air New Zealand had gained nearly 13% a year over the previous 10 years. And Fletcher Building had averaged more than 20%. Their recent performances were far from typical. A single share can be very volatile. NZX, the top performer in both 2009 and 2011, came 22nd out of 25 in the year in between. Mainfreight, top in 2010, came dead last in 2013. And F&P Appliances, top in 2012, had come 20th out of 25 in 2010. Perhaps most importantly: diversification smooths out the ride. When we looked at the portfolios of five shares, it showed how 'owning' more than a single share reduces the highs and lows. In 2011, for example, the return on one share was minus 14% while on another it was plus 55%. But on the portfolios, the range was much smaller. The worst portfolio's return was plus 1% while the best one got plus 22%. The same thing happened every other year, and of course it always will. The highs and lows are watered down. Footnote: the students didn't feel so bad about being lousy stock pickers after I told them about Lusha, the Russian circus chimp. Lusha was given the choice of 30 cubes, each with the name of a company on it. She chose eight. A year later, her 'portfolio' – which included banks and mining companies – had grown a truly impressive three-fold. Lusha had done better than 94% of Russia's investment funds, according to Moscow TV. Other stories tell of people throwing darts at newspaper stock price tables, buying whatever stocks the darts land on and beating most of the experts. * Mary Holm, ONZM, is a freelance journalist, a seminar presenter and a bestselling author on personal finance. She is a director of Financial Services Complaints Ltd (FSCL) and a former director of the Financial Markets Authority. Her opinions do not reflect the position of any organisation in which she holds office. Mary's advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following it. Send questions to mary@ Letters should not exceed 200 words. We won't publish your name. Please provide a (preferably daytime) phone number. Unfortunately, Mary cannot answer all questions, correspond directly with readers, or give financial advice.
Yahoo
10-06-2025
- Business
- Yahoo
RGA and SOA Research Institute Release Comprehensive Study on Retirement Readiness in Japan
Research reveals limited retirement planning and knowledge on financial products TOKYO, June 10, 2025--(BUSINESS WIRE)--The Society of Actuaries (SOA) Research Institute, in collaboration with Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, today released a new report titled "Retirement Readiness in Japan: Financial Security and Risk Perceptions." The study provides critical insights into the evolving retirement landscape in Japan, offering valuable information for insurers, policymakers, and financial advisors. The study, based on a November 2024 joint consumer survey conducted by the SOA and RGA among 750 Japanese respondents across three age groups (Prime Age Workers: ages 30-45, Pre-Retirees: ages 46-59, and Retirees: ages 60-75), reveals a maturing retirement system facing significant demographic pressures. With nearly 29% of Japan's population aged 65 or older1, the need for robust retirement planning and financial products is more critical than ever. Key findings: Financial Literacy: 17% of respondents reported no knowledge at all about investment and financial products, and 42% indicated 'not very knowledgeable.' Generational Divide in Planning: Retirees show significantly higher engagement in retirement planning compared to younger cohorts, with 37% of Prime Age Workers and 45% of Pre-Retirees not having done any retirement planning. Post-Retirement Concerns about Factors Outside of Individual's Control Dominate: 90% of respondents consider tax increase and impact of an aging society on government support as their top concerns. Source of Retirement Income: Prime Age Workers and Pre-Retirees are not confident that their retirement savings are sufficient; 89% of them expect to rely on full- or part-time job earnings as part of their retirement income. Preference on Financial Products with Guaranteed or Fixed Income: Guaranteed income for life (43%) and fixed income throughout retirement (39%) are considered top financial/investment product features for retirement income, indicating preference for risk-averse options. Significant Interest in Annuity Products: 73% of respondents expressed interest in annuities with increased payments for critical illness or disability or tax-deferred annuity (65%). Improved Engagement in Retirement Planning Since 2018: Overall engagement has improved. Willingness to buy lifetime income products increased from 22% in 2018 to 35% in 2024. Respondents who are very involved in managing their retirement savings increased significantly from 21% to 50%. "This research underscores the urgent need for innovative retirement solutions that address both income security and health-related financial risks," said Hironori Takahashi, Chief Executive Officer, RGA Japan. "The findings reveal significant opportunities for the insurance industry to develop tailored solutions that address the evolving needs and enhance financial security for Japan's rapidly aging population of retirees." "This report provides insights on the generational differences in retirement preparedness," said R. Dale Hall, FSA, MAAA, CERA, CFA, Managing Director of Research, SOA Research Institute. "Our study reveals that while 59% of Retirees review their social pension benefits, only 23% of Pre-Retirees and 17% of Prime Age Workers do so. Also, 37% of Prime Age Workers and 45% of Pre-Retirees haven't done any retirement planning at all. We encourage proactive retirement strategies across all age groups, working with employers, insurers, and policymakers." The full report offers in-depth analysis of retirement perceptions, planning behaviors, income sources, and risk management strategies, providing a comprehensive view of retirement readiness in Japan. For more information about the study, access the full report. About RGA Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world's largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $4.0 trillion of life reinsurance in force and assets of $128.2 billion as of March 31, 2025. To learn more about RGA and its businesses, please visit or follow RGA on LinkedIn and Facebook. Investors can learn more at About the Society of Actuaries With roots dating back to 1889, the Society of Actuaries (SOA) is the world's largest actuarial professional organization with more than 34,000 actuaries as members. The SOA's vision is for actuaries to be the leading professionals in measuring and managing risk. To learn more, visit The SOA Research Institute provides objective, data-driven research bringing together tried and true practices and future-focused approaches to address societal challenges and your business needs. It provides trusted knowledge, extensive experience and new technologies to help effectively identify, predict and manage risks. Visit 1 Statistics Bureau, Japan's Ministry of Internal Affairs and Communications website. View source version on Contacts FOR MORE INFORMATION: RGA Lynn PhillipsVice President, Corporate Communications636-736-2351lphillips@ Lizzie CurryExecutive Director, Public SOA Michael NowakCommunications Managerpress@ 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
Business Wire
10-06-2025
- Business
- Business Wire
RGA and SOA Research Institute Release Comprehensive Study on Retirement Readiness in Japan
TOKYO--(BUSINESS WIRE)--The Society of Actuaries (SOA) Research Institute, in collaboration with Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, today released a new report titled 'Retirement Readiness in Japan: Financial Security and Risk Perceptions.' The study provides critical insights into the evolving retirement landscape in Japan, offering valuable information for insurers, policymakers, and financial advisors. This research underscores the urgent need for innovative retirement solutions that address both income security and health-related financial risks. Share The study, based on a November 2024 joint consumer survey conducted by the SOA and RGA among 750 Japanese respondents across three age groups (Prime Age Workers: ages 30-45, Pre-Retirees: ages 46-59, and Retirees: ages 60-75), reveals a maturing retirement system facing significant demographic pressures. With nearly 29% of Japan's population aged 65 or older 1, the need for robust retirement planning and financial products is more critical than ever. Key findings: Financial Literacy: 17% of respondents reported no knowledge at all about investment and financial products, and 42% indicated 'not very knowledgeable.' Generational Divide in Planning: Retirees show significantly higher engagement in retirement planning compared to younger cohorts, with 37% of Prime Age Workers and 45% of Pre-Retirees not having done any retirement planning. Post-Retirement Concerns about Factors Outside of Individual's Control Dominate: 90% of respondents consider tax increase and impact of an aging society on government support as their top concerns. Source of Retirement Income: Prime Age Workers and Pre-Retirees are not confident that their retirement savings are sufficient; 89% of them expect to rely on full- or part-time job earnings as part of their retirement income. Preference on Financial Products with Guaranteed or Fixed Income: Guaranteed income for life (43%) and fixed income throughout retirement (39%) are considered top financial/investment product features for retirement income, indicating preference for risk-averse options. Significant Interest in Annuity Products: 73% of respondents expressed interest in annuities with increased payments for critical illness or disability or tax-deferred annuity (65%). Improved Engagement in Retirement Planning Since 2018: Overall engagement has improved. Willingness to buy lifetime income products increased from 22% in 2018 to 35% in 2024. Respondents who are very involved in managing their retirement savings increased significantly from 21% to 50%. 'This research underscores the urgent need for innovative retirement solutions that address both income security and health-related financial risks,' said Hironori Takahashi, Chief Executive Officer, RGA Japan. 'The findings reveal significant opportunities for the insurance industry to develop tailored solutions that address the evolving needs and enhance financial security for Japan's rapidly aging population of retirees.' 'This report provides insights on the generational differences in retirement preparedness,' said R. Dale Hall, FSA, MAAA, CERA, CFA, Managing Director of Research, SOA Research Institute. 'Our study reveals that while 59% of Retirees review their social pension benefits, only 23% of Pre-Retirees and 17% of Prime Age Workers do so. Also, 37% of Prime Age Workers and 45% of Pre-Retirees haven't done any retirement planning at all. We encourage proactive retirement strategies across all age groups, working with employers, insurers, and policymakers.' The full report offers in-depth analysis of retirement perceptions, planning behaviors, income sources, and risk management strategies, providing a comprehensive view of retirement readiness in Japan. For more information about the study, access the full report. About RGA Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world's largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $4.0 trillion of life reinsurance in force and assets of $128.2 billion as of March 31, 2025. To learn more about RGA and its businesses, please visit or follow RGA on LinkedIn and Facebook. Investors can learn more at About the Society of Actuaries With roots dating back to 1889, the Society of Actuaries (SOA) is the world's largest actuarial professional organization with more than 34,000 actuaries as members. The SOA's vision is for actuaries to be the leading professionals in measuring and managing risk. To learn more, visit The SOA Research Institute provides objective, data-driven research bringing together tried and true practices and future-focused approaches to address societal challenges and your business needs. It provides trusted knowledge, extensive experience and new technologies to help effectively identify, predict and manage risks. Visit
Business Journals
25-04-2025
- Health
- Business Journals
Direct primary care: This doctor's order for affordable employee wellness
During renewals and open enrollment, employers feel this squeeze acutely. How can they attract, keep, and do right by their employees when quality health benefits always cost more? We've watched it happen for decades: Health care gets more expensive, less affordable, and less accessible every year. During renewals and open enrollment, employers feel this squeeze acutely. How can they attract, keep, and do right by their employees when quality health benefits always cost more? The good news is, it's not impossible — if you're willing to take a different approach to the problem. Direct primary care: A doctor-led movement towards real health Direct primary care (DPC) isn't exactly new, but it is a powerful — and underused — approach to keeping people healthy. DPC came from a grassroots movement in the late 1990s and early 2000s led by primary care providers who wanted freedom from the burden of high patient volumes, administrative overwhelm, and the red tape of insurance-based billing. Within the membership model, patient-members pay a monthly or annual fee directly to their primary care provider, not their insurer. The fee covers routine visits, acute care, labs — the everyday care that people need to stay well. DPC is a win-win-win: Providers have control over their practice, patients can afford to use primary care — and, they do — resulting in better overall health. A 2020 Society of Actuaries report on a DPC case study revealed members had nearly a 54% reduction in emergency room claims and a more than 25% reduction in hospital admissions. That's no small savings. It's a proven model with powerful potential. But how can employers bring DPC to their people? Until very recently, the power of DPC was also one of its greatest obstacles: scalability. The small-scale, personal touch of DPC made it a great choice for individuals or small employers seeking high-quality care. But bringing that same model to dozens of employees (let along a few hundred) was challenging. Not anymore. Introducing $0 out-of-pocket primary care Harbor Health is at the forefront of making Direct Primary Care a viable option for Austin-based employers looking to support their employees' health — without passing cost on to employees. Last year, we brought our own DPC offering to the market: Core by Harbor Health. Core enables employers to make primary care absolutely free to their employees and eligible dependents at just $40 per member per month. But we didn't stop there. Core also offers: A personalized health team for every member Health coaching Same-day appointments (virtual visits and Express Care) Pharmacy management Acute care for illness and injury Annual wellness exams Preventive screenings for chronic diseases and cancer Chronic disease management Certain vaccines and lab work Referrals to specialists with proven track records of high-quality care and outcomes Because of Harbor's clinical footprint (11 clinics) and holistic care model, we're able to take DPC a step further than previously possible — removing cost and access barriers to care, and complementing with wraparound services that move members from sick-care to real wellness. What's the catch? DPC isn't a cure-all. It doesn't cover specialty care, and it's not a replacement for health plans. It is, however, a powerful tool that packs a one-two punch. By embracing DPC as part of your benefits structure, you can offer affordability and access to care that leads to measurably better health for your people. Find a better way to better health If you're ready to take a new (but proven) approach to reduce your health care spend without leaving your employees and their families footing the bill, direct primary care memberships like Core by Harbor Health can be the perfect prescription for health and wealth. Harbor Health is Austin's favorite and fastest growing clinic group — changing the game through an integrated model that co-creates better health at lower costs. Our secret? We deliver personalized, condition-based care that people love. Clay Johnston is the co-founder and chief medical officer of Harbor Health. He also served as the inaugural dean of The University of Texas at Austin Dell Medical School. His passion is redesigning the health system to create a new, harmonious vision of health — one focused on patient-provider partnership, transparency, and wellness.
Express Tribune
19-04-2025
- Business
- Express Tribune
Climate risk spurs insurance need
Experts underscored the need to promote actuarial education in Pakistan to strengthen the insurance sector, which would eventually support the development and innovation of products. photo: file Listen to article With climate change vulnerabilities increasing, countries like Pakistan need to focus on enhancing insurance penetration to protect urban dwellers as well as farmers from extreme weather patterns. Talking to the media, Society of Actuaries (SOA) Managing Director Andrew Peterson stressed the need for introducing more insurance products related to damages occurring due to climate change. Accompanying him, SOA Regional Director Zain Ibrahim referred to the recent hailstorm in Islamabad and said that threats from extreme weather conditions were not limited to rural areas, crops and mountains that had faced flash floods. "Those having ordinary cars or solar panels need insurance cover as well," Ibrahim emphasised, adding that there was a gap between the insurance sector and the general public in Pakistan. Experts highlighted that farmers lacked adequate knowledge of the available crop insurance products, while insurance companies also appeared to be engaged in limited activity in the sector. However, he pointed out that a number of companies were offering insurance products in Punjab and Khyber-Pakhtunkhwa for flood and drought mitigation – a much-needed solution in Pakistan and the region, which was even more critical than theft insurance. They underscored the need to promote actuarial education in Pakistan to strengthen the insurance sector, which would eventually support the development and innovation of products. SOA was established in 1889 and currently it has over 34,000 members. Its mission is to advance actuarial knowledge and help actuaries offer relevant, expert advice on financial and societal challenges. Actuaries are experts who use mathematics, statistics, predictive analytics, economics and finance to analyse risk and make informed decisions. Actuaries play crucial roles in industries such as insurance, banking, healthcare, consulting and public policy. "The key job of actuaries is to design and validate financial models, helping businesses turn risk into opportunity," Peterson said. He called on Pakistani youth to attain actuarial education, adding that the profession had global demand too. Some of the SOA initiatives in Pakistan include discounts on exams and preparatory materials to become an actuary, offering scholarships to promising students and engagements with local universities to create awareness and build capacity. Pakistan has witnessed growth in the actuarial profession, with a 17% increase in candidates appearing for the SOA examination in 2024. Currently, there are over 1,700 Pakistan-based SOA affiliate members. "The demand is set to rise sharply as SECP (the Securities and Exchange Commission of Pakistan) mandates every insurance firm to establish an 'actuarial function'," Ibrahim added.
