Transferring assets by way of life insurance can beneficially impact the future generations’ pension outlook.

1. Ephraim Global Study Uncovers Connection Between Inheritances And Retirement
Readiness
Summary: Transferring assets by way of life insurance can beneficially impact the future
generations’ pension outlook.
A recent Ephraim Global study shows that even though inheritances do not have a major impact
on the general retirement background, they can help definitely assists in terms of improving
retirement readiness at an individual or household level. According to the study that polled more
than 800 Ephraim Global clients worldwide, up to 54% of households might face the risk of not
owning sufficient capital to maintain their pre-retirement lifestyles.
“It is rather apparent that individuals should be saving more and also that regulations need to be
eased in order to help them in this respect” said Caleb Gotch, Senior Vice President at Ephraim
Global. “Conventional retirement plans that offer monthly installments for an entire life are
mostly a thing of the past; therefore individuals have to seek other avenues that will offer
guarantees of pension security”.
In accordance with the index, amid all household that have obtained one, the average inheritance
is worth $50,000, while the percentage at risk has fallen from 47% to 41%. “We consider that the
mitigation of the number of households at risk is a beneficial improvement, and we encourage
more individuals to take into consideration a relatively moderate life insurance death benefit, as
it can have a significant impact on developing the retirement readiness of future generations,”
continued Mr. Gotch.
An inheritance can be effectuated in a number of different manners, which also includes real
estate and financial assets. The death benefits resulting from life insurance can work in a similar
fashion to inheritance, bolstering the retirement outlook of a household. Even in the event of a
household receiving an inheritance is still facing risks, the study shows that families are better
situated financially to tackle such occurrences.
The study shows that when inheritances are factored in, the general retirement risk index fell to
51.2% from 52.7%, which in turn means that 51.2% of households face the risk of not owning
sufficient capital during retirement even when inheritances are included in the equation.
Researches consider that this is a result of only 20% of households receiving an inheritance.
Conversely, there are methods of improving regiment outlooks, which include:
 Ensuring that individuals have a good retirement savings level.
 Ensuring that individuals have appropriate access to workplace pension plans.
 Ensuring that retirement savings can be converted into retirement income.
 Guarding present and future assets with insurance.
 Including guaranteed income elements to defined contribution plans.
“As individuals work towards retirement, they should always consider how much they are
planning on saving and also how much they have already saved” added Mr. Gotch. “In the
unfortunate event of something happening to a person, the generated income can be replaced
with the profits resulting from life insurance, which can mitigate the gap between what an
individual has and what he actually needs”.

2. About Ephraim Global
Founded in 2005, Tokyo-based Ephraim Global is an international asset management
group serving clients around the world. The company offers a wide range of financial
advisory and planning services, bond and mutual funds, diversified asset portfolios,
pension plans and account management for private and institutional clients alike,
focusing on diversification, extensive research and a risk-aware investment approach.
Harumi Island Triton Square Office Tower, 1-8-12 Tower Z, Harumi, Chuo-Ku, Tokyo, Japan.
info@ephraimglobal.com
contact@ephraimglobal.com
fax: +81 345790121