DOCSLIB.ORG

Risk Management and the Pension Fund Industry

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Risk Management and the Pension Fund Industry CHAPTER III RISK MANAGEMENT AND THE PENSION FUND INDUSTRY financial markets develop, a variety Switzerland, the United Kingdom, and the of nonbank institutions, such as United States, where funded pension plans insurers, pension funds, mutual are most developed. The size of pension sav- A s funds, and hedge funds, have been ings in these countries, their projected growth increasing their exposure to market and (whether managed by the state, corporations, credit risks. This chapter is the second in a or individuals), and the more recent develop- series on the financial stability implications of ment of funded pension schemes in other this reallocation and transfer of risk, following countries, such as France, Germany, and Italy, the chapter, "Risk Transfer and the Insurance highlight the fast-growing importance of pen- Industry," in the April 2004 GFSR. This chap- sion funds for international capital markets ter focuses on pension funds, as significant and to financial stability. institutional investors. How pension funds manage risk has a very Pension funds have an impact on the stabil- important bearing on the distribution of ity of financial markets in several ways, most financial and other risks among the different significantly through their investment behav- sectors of the economy. As employers and ior. The global size and projected growth of governments have become more aware of the pension fund sector mean that this the funding challenges pension funds face investor class can move markets in its own from aging populations, and more conscious right. Any sizable reallocation of assets, say of the investment risks involved in funded between fixed income and equities, could pension plans, they have sought to manage have a bearing on financial market stability. that risk in a variety of ways. Reductions in Such strategies are not only driven by funda- state pension benefits in most countries, and mental business models but also by cyclical movements from defined benefit (DB) to factors and risk management considerations, defined contribution (DC) pension plans by as well as by official policies in areas such as many businesses, have increasingly trans- taxation, regulation, and financial accounting. ferred retirement risk (including investment, The changing needs of aging pension fund market, longevity risks, etc.) to the house- members also have a longer-run impact. As hold sector.1 such, an analysis of the pension funds' impact National pension systems are typically repre- on financial stability will have to cover all of sented by a "multi-pillar" structure, with the the above elements. sources of retirement income derived from a This chapter looks at the longer-term chal- mixture of government, employment, and lenges pension funds face as populations age, individual savings. A variety of definitions of and the key issues to address in order to the pillars are used in academic literature, gen- enhance their risk management practices and erally dependent on the purpose of each study. their role as long-term investors. The chapter In this chapter, we identify and discuss three focuses primarily on Japan, the Netherlands, pillars, based primarily on the source of 1Defined benefit schemes are those in which the employer commits to provide specific benefits related to an individual's wages and length of employment, while under defined contribution plans the commitment is to make specific contributions to a pension fund, with the benefits dependent on the level of contributions to the scheme and the investment return. For definitions of other pension terminology see the glossary. 81 ©International Monetary Fund. Not for Redistribution CHAPTER III RISK MANAGEMENT AND THE PENSION FUND INDUSTRY savings (i.e., government, employment, or pensions crisis," are discussed in the chapter. individual): Pillar 1—the state, often a combi- Similar to our previous work, we have high- nation of a universal entitlement and an earn- lighted influencing factors, such as market ings-related component; Pillar 2—occupational characteristics, regulatory and tax policies, pension funds, increasingly funded, organized and accounting principles. Finally, we look at at the workplace (e.g., DB and DC, and newer different investment strategies and risk man- hybrid schemes); and Pillar 3—private savings agement approaches, and how these may help plans and products for individuals, often tax- pension funds take a long-term perspective, advantaged. These are the definitions com- and thereby support financial stability monly used by industry participants and objectives. analysts, and are particularly suitable for our focus on risk transfer.2 This chapter primarily focuses on Pillar 2, Why Pension Funds Are Important for as collective funds organized through the Financial Stability workplace. Our focus reflects the role of Pillar 2 funds as a major institutional investor class. An Aging Workforce The design of Pillar 1 programs will not be The importance of pension savings has discussed, as this is primarily a fiscal issue, increased dramatically in recent years, particu- although it should be noted that in some larly as populations mature. Historically, low advanced economies, such as Japan, France, proportions of pensioners in the overall popu- and Canada (and certain developing econo- lation and the relatively larger workforce from mies), some public sector schemes are (at the "baby boom" generation kept the burden least partially) funded.3 This chapter will only of pension outlays somewhat modest. DB briefly discuss Pillar 3 and efforts by some gov- schemes seemed a manageable and even ernments to encourage long-term retirement attractive (due to benefit deferral) proposi- savings generally, as we plan to discuss the tion to many companies. But as populations fund management industry and household age, the relative size of pension liabilities and sector in more detail in the March 2005 GFSR. investment risk grows. The growth in liabilities Indeed, the economic characteristics of DC has been greater than expected, as increases plans, including their allocation of risk, are in longevity have consistently exceeded earlier very similar to Pillar 3, and this chapter focuses actuarial forecasts. Questions of managing more on the management of DB plans and and maintaining funding levels have become the forces moving funds from DB to DC, more urgent, and some pension providers will rather than on the management of DC plans find it increasingly difficult to meet their pay- themselves. ment obligations according to their existing Pillar 2 funds can enhance financial stability benefit structures. For policymakers, the rela- by acting as a stable, long-term investor base; tive burdens and merits of each of the three however, increasingly a variety of factors are pillars are increasingly a prominent topic of influencing their structure, investment behav- political and social debate. ior, and management of risks. These factors, Advanced economies are confronted with a and how we arrived at a point many call "a variety of retirement challenges associated 2Another definition used in pension studies, particularly for emerging markets, was first developed in World Bank (1994). It describes Pillar 1 as "non-contributory state pension," Pillar 2 as "mandatory contributory," and Pillar 3 as "voluntary contributory." This definition has been most useful for considering questions of social safety nets, redistribution of income, and related issues. 3Many emerging market economies also wholly or partially fund public sector pension schemes. Emerging mar- ket pension issues will be discussed in future GFSRs. 82 ©International Monetary Fund. Not for Redistribution WHY PENSION FUNDS ARE IMPORTANT FOR FINANCIAL STABILITY Table 3.1. Life Expectancy at Birth: Estimates and Projections (In years) 1955 1980 2000 2020 2050 United States 68.9 73.3 76.2 78.7 81.6 Figure 3.1. Life Expectancy at Birth Japan 63.9 75.5 80.5 84.3 88.1 (In years) Selected European countries1 67.6 73.3 77.7 80.5 83.2 Sources: United Nations, World Population Prospects: The 2002 Revision; and IMF staff estimates. 1Weighted average for France, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom; weights are based on the countries' total population data for 2000. with population aging, reflecting in part two long-term trends:4 • Increasing longevity. In recent decades, life expectancy at birth has consistently increased in all advanced economies, from an average of about 68 years in the postwar period to 78 years today (Table 3.1 and Figure 3.1), and is projected to reach 80 Sources: United Nations, World Population Prospects: The 2002 Revision; and IMF staff estimates. years or more by 2020. Importantly for pen- 1Weighted average for France, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom; weights are based on the countries' total population data for 2000. sion costs, life expectancy after age 65 is also rising steadily, from 18 years currently, to a projected 20 years or more in 2020 in the United States and some selected European countries, and rising steeply in Japan Figure 3.2. Remaining Life Expectancy at Age 65 (In years) (Figure 3.2). • Low and declining fertility rates. In advanced -27 economies between the early 1950s and the late 1990s, fertility rates have dropped from about 2.8 to 1.7 children per woman, and are below the replacement rate in most advanced economies, except the United States. While population aging is a global phenom- enon, it is happening rapidly in some coun- tries. The aging trend is particularly visible in Italy, Japan, and Switzerland, where the 4We have explicitly excluded the health and medical issues from the scope of this study, in order to focus on Sources: United Nations, World Population Prospects: The 2002 Revision; and IMF funded pensions. However, health and medical costs staff estimates. 1 are rising rapidly in all the mature markets, and to the Weighted average life expectancy at age 65 for France, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom; weights are based on the countries' extent that such private schemes are funded at all, the total population data for 2000.
Load more

Recommended publications
  • International Update, June 2021
    International Update Recent Developments in Foreign Public and Private Pensions June 2021 will each contribute 2 percent of covered monthly Asia and the Pacific earnings/payroll. The combined contribution rate of 4 percent will then increase by 4 percentage points Cambodia Establishes Social in the next 5-year period and by 2.75 percentage Insurance Pension Program points in every subsequent 10-year period. (The for Private-Sector Employees combined rate will continue to be split equally between employees and employers.) Covered On March 4, Cambodia’s government issued a decree employees will also be able to pay additional contri- establishing a social insurance pension program that butions on a voluntary basis for a higher benefit. will for the first time provide private-sector employees • Old-age pension: A monthly old-age pension will with public old-age, disability, and survivor benefits. be paid to insured persons who have reached age 60 (The country currently only has special pension pro- and have at least 12 months of contributions. The grams for civil servants and military personnel.) The pension will be calculated based on the insured per- new program will be administered by the National son’s covered earnings and a predetermined benefit Social Security Fund (NSSF) and financed through rate. (More information on the benefit formula is not employee and employer contributions, state funds, and currently available.) investment returns. It will become operational once the Ministry of Labor and Vocational Training and • Disability pension: A monthly disability pension the Ministry of Economy and Finance issue additional will be paid to insured persons who have at least guidance on the program’s rules and procedures.
    [Show full text]
  • Laurence J. Kotlikoff
    Curriculum Vitae July 2020 Laurence J. Kotlikoff Personal Information Date of Birth: January 30, 1951 Married, Two Children Business Addresses Department of Economics, Boston University 270 Bay State Road, Boston, MA 02215 617 353-4002 phone, 617 834-2148 cell 617 353-4001 fax, email [email protected] Websites www.kotlikoff.net www.esplanner.com www.esplanner.com/basic www.maximizemysocialsecurity.com www.kotlikoff2012.org Education B.A. Economics, University of Pennsylvania, 1973 Ph.D. Economics, Harvard University, 1977 Academic Experience Research Associate, National Bureau of Economic Research, 1977-present Post Doctoral Fellow, University of California, Los Angeles, 1977-1980 Visiting Scholar, National Bureau of Economic Research, Fall 1978, Fall 1983 Assistant Professor, Yale University, 1980-1981 Associate Professor, Yale University, 1981-1984 Research Associate, Cowles Foundation, Yale University, 1980-1984 Senior Economist, President's Council of Economic Advisors, 1981-1982 Visiting Fellow, The Hoover Institution, 1984 Professor of Economics, Boston University, 1984-present Chairman, Boston University Department of Economics, 1986-1989 and 2001-2005 Houblon-Norman Fellow, The Bank of England, 1998 Visiting Professor, Massachusetts Institute of Technology, 1990-1991 Honors, Scholarships and Fellowships Summa Cum Laude, University of Pennsylvania, 1973 Phi Beta Kappa, 1973 Harvard University Scholarship, 1973 - 1977 Board of Governors, Federal Reserve System, Student Intern, 1975 Hoover Foundation Fellowship, 1976-1977 Foundation
    [Show full text]
  • Old Europe? Demographic Change and Pension Reform
    CENTRE FOR EUROPEAN REFORM OLD EUROPE? DEMOGRAPHIC CHANGE AND PENSION REFORM David Willetts MP about the CER The Centre for European Reform is a think-tank devoted to improving the quality of the debate on the European Union. It is a forum for people with ideas Old Europe? from Britain and across the continent to discuss the many social, political and economic challenges facing Europe. It seeks to work with similar bodies in other European countries, North America and elsewhere in the world. Demographic The CER is pro-European but not uncritical. It regards European integration as largely beneficial but recognises that in many respects the Union does not work well. The CER therefore aims to promote new ideas for reforming the European Union. change and ★ Director: CHARLES GRANT ADVISORY BOARD pension PERCY BARNEVIK................................................................................... Chairman, AstraZeneca CARL BILDT................................................................................. Former Swedish Prime Minister ANTONIO BORGES................................................................................ Former Dean of INSEAD NICK BUTLER (CHAIR)................................. Group Vice President for Policy Development, BP p.l.c. reform LORD DAHRENDORF ............... Former Warden of St Antony’s College, Oxford & EU Commissioner VERNON ELLIS....................................................................... International Chairman, Accenture RICHARD HAASS.............................................................
    [Show full text]
  • Is Big Really Beautiful? the Limits of Pension Consolidation
    Is big really beautiful? The limits of pension consolidation Many governments are thinking about merging their disparate systems. New research finds real benefits, but capturing them is difficult. Eser Keskiner and Robin Matthias SEPTEMBER 2018 • PRIVATE EQUITY © Yongyuan Dai/Getty Images Pension systems face a tough road. Long-term arguments, economies of scale do not automatically economic growth is slowing, pulling down returns, translate to “economies of consolidation,” as and political uncertainty is high. Funding levels numerous pitfalls can let the benefits slip away. have deteriorated, and despite recent improvements, Pension systems that want to achieve synergies pension funds will continue to be under pressure as through consolidation need to integrate funds beneficiaries live longer. Regulators are sharpening carefully, using a few essential best practices: develop their focus on achieving greater efficiency and a clear target model that articulates the drivers of effectiveness for the industry. value, don’t let politics interfere with a focus on value creation, ensure effective decision making, keep the While defined-benefit (DB) and defined-contribution integration moving quickly, and reduce uncertainty (DC) schemes around the world are forming different for employees and members as quickly as possible. responses to these challenges, there is a common theme in many countries: consolidation. The United Argument 1: Scale drives better investment Kingdom is pooling the investments of its local returns pension schemes. The Productivity Commission Some believe that larger pension funds should in Australia is reviewing the competitiveness and generate higher gross investment returns, reasoning efficiency of the country’s pension funds, with ongoing that larger funds have better access to the most focus on subscale funds with poor performance.
    [Show full text]
  • Pension Legacy Costs and Local Government Finances
    Pension Legacy Costs and Local Government Finances © Thinkstock Loss of jobs Richard F. Dye and Tracy M. Gordon Alas, principles of prudence in public finance and a shrinking are not always observed, and local governments tax base in ow will local government finances in the United States have accumulated substantial Detroit, Michigan, unfunded pension liabilities in recent years. This compound the be affected by the large and increas- city’s pension ing burden to pay for previously obli- situation breaks an important link in the relation- liability problem. Hgated pension costs? How, in particu- ship between taxpayers and the services they receive lar, will these pension legacy costs change residents’ —the rough correspondence between the overall perceptions of the local property tax and their wil- value of public services and the resources taken lingness to pay? As a first step in a larger Lincoln from the private sector. There is considerable debate Institute of Land Policy research agenda on these about the strength of this correspondence and how questions, we ask: What is known—and just as im- price-like the relationship is between value paid portantly, what is not known—about the magnitude and value received for individual taxpayers, but of unfunded local government pension liabilities there can be little question that using current in the United States? (see Gordon, Rose, and revenues to pay for past services weakens the link. Fischer 2012) It is a first principle of public finance that cur- Growing Public Awareness rent services should be paid with current revenues State and local government employee pensions are and that debt finance should be reserved for capital in the headlines almost daily (box 1).
    [Show full text]
  • Reforming Pensions: Principles, Analytical Errors and Policy Directions
    Reforming pensions: Principles, analytical errors and policy directions Nicholas Barr and Peter Diamond London School of Economics, United Kingdom; MIT Department of Economics, United States of America Abstract This article, sets out a series of principles for pension design rooted in economic theory: pension systems have multiple objectives, analysis should consider the pension system as a whole, analysis should be framed in a second-best context, different systems share risks differently, and systems have different effects by generation and by gender. That discus- sion is reinforced by identification of a series of widespread analytical errors — errors that appear in World Bank work, but by no means only in World Bank work: tunnel vision, improper 5 use of first-best analysis, improper use of steady-state analysis, incomplete analysis of implicit pension debt, incomplete analy- sis of the impact of funding (including excessive focus on financial flows, failure to consider how funding is generated, and improper focus on the type of asset in trust funds), and ignoring distributional effects. The second part of the article considers implications for policy: there is no single best pension design, earlier retirement does little or nothing to reduce unemployment, unsustainable pension promises need to be addressed directly, a move from pay-as-you-go towards funding in a mandatory system may or may not be welfare improving, and implementation matters — policy design that exceeds a country’s capacity to implement it is bad policy design. We illustrate the ranges of designs of pension systems that fit the fiscal and institutional capacity constraints typical at different levels of economic development.
    [Show full text]
  • Canadian Journal of Economics and Political Science, Vol
    - 50- References Aaron, Henry 1., 1966, "The Social Insurance Paradox," Canadian Journal ofEconomics and Political Science, Vol. 32 (August), pp. 371-74. _~, 1982, Economic Effects ofSocial Security (Washington: Brookings Institution). Agulnik, Phil, 2000, "Maintaining Incomes After Work: Do Compulsory Earnings-Related Pensions Make Sense?" Oxford Review ofEconomic Policy, Vol. 16, Issue 1, pp. 45- 56. _--" and Nicholas A, Barr 2000, "The PubliclPrivate Mix in u.K. Pension Policy," World Economics, Vol. 1 (January-March), pp. 69-80. Arenas de Mesa, Alberto, and Mario Marcel, 1999, "Fiscal Effects of Social Security Reform in Chile: The Case of the Minimum Pension" paper presented at the APEC second regional forum on pension funds reforms, Viiia del Mar, Chile, April 26-27. Asher, Mukul G., 1999, "The Pension System in Singapore," Social Protection Discussion PaperNo. 9919 (Washington: World Bank). Atkinson, A B., 1999, The Economic Consequences ofRolling Back the Welfare State (Cambridge, Massachusetts: MIT Press). Auerbach, Alan J., and Laurence 1. Kotlikoff, 1990, "Demographics, Fiscal Policy, and U.S. Saving in the 1980s and Beyond," in Tax Policy and the Economy, ed. by Lawrence H. Summers, Vol. 4 (Cambridge, Massachusetts: National Bureau of Economic Research and MIT Press). Auerbach, Alan J., et al., 1989, "The Economic Dynamics of Ageing Populations: The Case of Four OECD Countries," OECD Working Paper No. 62 (paris: OECD). Australia, Department of Family and Community Services, 1998, "The Australian System of Social Protection-What (overseas) Economists Should Know," paper presented at a research agenda conference on "Income Support, Labour Markets and Behaviour," Australian National University, Canberra. Barr, Nicholas A, 1979, "Myths My Grandpa Taught Me," Three Banks Review, No.
    [Show full text]
  • Retiree Households' Incomes Have Risen
    Chairman Neal, Ranking Member Brady, and Members of the Committee. Thank you for the opportunity to discuss developments in retirement income policy in the United States. Today I wish to make three main points: 1. There simply is no retirement crisis. Retirement incomes have been rising rapidly and the vast majority of retirees state they have sufficient money to live comfortably. Retirement savings have risen seven-fold since participation in traditional defined benefit pensions peaked in 1975 and retirement plan participation has increased. No system is perfect, but the notion that retirement income provision needs a wholesale redesign is entirely unjustified by the data. 2. Congress has enacted a number of policies to increase 401(k) participation and improve 401(k) investments. Further bipartisan improvements have been suggested. However, Congress has over 30 years failed to reform Social Security and many Americans have little faith in the program. If there is a retirement crisis, it is in retirement plans run by federal, state and local governments, whose unfunded liabilities exceed even the most pessimistic estimates of shortfalls in retirement saving by U.S. households. 3. Because there is no retirement crisis, proposals such as to expand Social Security should be considered with caution. Expanding benefits could help low-income retirees, but middle and high-income workers would likely reduce their personal saving in response to higher expected Social Security benefits. Likewise, while tax increases would help address Social Security’s funding shortfalls, those same tax increases could increase borrowing and debt by low-income workers and reduce work and encourage tax evasion by high high-wage employees.
    [Show full text]
  • The New Normal in Public Pension Investment Returns
    THE “NEW NORMAL” IN PUBLIC PENSION INVESTMENT RETURNS by Anil Niraula and Truong Bui April 2020 Reason Foundation’s mission is to advance a free society by developing, applying and promoting libertarian principles, including individual liberty, free markets and the rule of law. We use journalism and public policy research to influence the frameworks and actions of policymakers, journalists and opinion leaders. Reason Foundation’s nonpartisan public policy research promotes choice, competition and a dynamic market economy as the foundation for human dignity and progress. Reason produces rigorous, peer- reviewed research and directly engages the policy process, seeking strategies that emphasize cooperation, flexibility, local knowledge and results. Through practical and innovative approaches to complex problems, Reason seeks to change the way people think about issues, and promote policies that allow and encourage individuals and voluntary institutions to flourish. Reason Foundation is a tax-exempt research and education organization as defined under IRS code 501(c)(3). Reason Foundation is supported by voluntary contributions from individuals, foundations and corporations. The views are those of the author, not necessarily those of Reason Foundation or its trustees. THE “NEW NORMAL” IN PUBLIC PENSION INVESTMENT RETURNS i EXECUTIVE SUMMARY Despite a decade-long bull market—and even before the arrival of the pandemic-related market turmoil of March 2020—many “defined benefit” (DB) pension plans covering U.S. state and local government employees have continued grappling with growing unfunded liabilities. And the primary culprit of growing pension debt, according to analyses by the Pension Integrity Project at Reason Foundation, has been the across-the-board investment underperformance of pension assets relative to plans’ own return targets.
    [Show full text]
  • Defusing a Pensions Timebomb
    spotlight PENSIONS DEFUSING A PENSIONS TIMEBOMB MATTHEW YOUNG THINKS THE OUTLOOK FOR PENSIONS IN EUROPE IS BLEAK WITHOUT IMMEDIATE ACTION, AND EXAMINES WHAT THE PROBLEMS ARE AND WHAT STEPS MAY BE NECESSARY TO OVERCOME THEM. he Adam Smith Institute – a leading economic policy think (because of involuntary early retirement, unemployment or retraining) tank – is a long-term contributor to the debate on pensions the ratio of workers to retirees will be alarmingly close to 1.1. reform, maintaining close links with a range of specialist and For Europe the pensions crisis will impose it’s maximum strain senior researchers and policymakers in the financial services, somewhere between 2010 and 2025, when the largest European age Tindustry, government and academe in the UK, Europe and the US. The group will be those who are retired or about to retire. With life notes below synthesize some of the important recent work touching expectancy at that point comfortably into the 80’s and continuing to the European pensions time bomb to provide a summary of the head north, we will be funding an average retirement period of problem – its character, impact and importance – and the emerging 20-30 years and carrying with it truly staggering health care direction for reform. spending. WHAT’S THE PROBLEM? Many of the major hazards facing the world WHO IS WORST HIT? Taken together the forecast spending on state right now – global warming, sustainable energy supplies, the War on pensions and health benefits for the elderly in most European Terror, AIDS and so on – are recognised although perhaps not well countries will see an increased tax take of 10% of GDP effectively understood.
    [Show full text]
  • The Social Contract in the 21St Century Mckinsey Global Institute
    The social contract in the 21st century The social contract in the 21st century Outcomes so far for workers, consumers, and savers in advanced economies February 2020 McKinsey Global Institute Since its founding in 1990, the McKinsey Global Institute (MGI) has sought to develop a deeper understanding of the evolving global economy. As the business and economics research arm of McKinsey & Company, MGI aims to help leaders in the commercial, public, and social sectors understand trends and forces shaping the global economy. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on six themes: productivity and growth, natural resources, labor markets, the evolution of global financial markets, the economic impact of technology and innovation, and urbanization. Recent reports have assessed the digital economy, the impact of AI and automation on employment, physical climate risk, the productivity puzzle, the economic benefits of tackling gender inequality, a new era of global competition, Chinese innovation, and digital and financial globalization. MGI is led by three McKinsey & Company senior partners: co-chairs James Manyika and Sven Smit, and director Jonathan Woetzel. Michael Chui, Susan Lund, Anu Madgavkar, Jan Mischke, Sree Ramaswamy, Jaana Remes, Jeongmin Seong, and Tilman Tacke are MGI partners, and Mekala Krishnan is an MGI senior fellow. Project teams are led by the MGI partners and a group of senior fellows and include consultants from McKinsey offices around the world.
    [Show full text]
  • THE COMING PENSIONS CRISIS Recommendations for Keeping the Global Pensions System Afloat
    THE COMING PENSIONS CRISIS Recommendations for Keeping the Global Pensions System Afloat Citi GPS: Global Perspectives & Solutions March 2016 Citi is one of the world’s largest financial institutions, operating in all major established and emerging markets. Across these world markets, our employees conduct an ongoing multi-disciplinary global conversation – accessing information, analyzing data, developing insights, and formulating advice for our clients. As our premier thought-leadership product, Citi GPS is designed to help our clients navigate the global economy’s most demanding challenges, identify future themes and trends, and help our clients profit in a fast-changing and interconnected world. Citi GPS accesses the best elements of our global conversation and harvests the thought leadership of a wide range of senior professionals across our firm. This is not a research report and does not constitute advice on investments or a solicitation to buy or sell any financial instrument. For more information on Citi GPS, please visit our website at www.citi.com/citigps. Citi GPS: Global Perspectives & Solutions March 2016 Farooq Hanif Charles Millard Head of European Insurance Research Head of Pension Relations +44-207-986-3975 | [email protected] +1-212-723-4700 | [email protected] Erik J. Bass, CFA Elizabeth Curmi US Life Insurance Analyst Thematic Analyst +1-212-816-5257 | [email protected] +44-20-7986-6818 | [email protected] Sarah Deans Darwin Lam, CFA Head of EMEA Accounting & Valuation Head of Asia Pacific Insurance Research Research +852-2501-2482 | [email protected] +44-20-7986-4156 | [email protected] Hiroyuki Maekawa Nigel Pittaway Japanese Insurance Analyst Australian Insurance/Diversified Financial Analyst +81-3-6270-4849 | [email protected] +61-2-8225-4860 | [email protected] With thanks to: Boston College Center for Retirement Research, Keith Crider (Citi), Swapnil Katkar (Citi,) Martin Bernstein (Citi), William R Katz (Citi), and Haley Tam (Citi).
    [Show full text]