O slideshow foi denunciado.
Seu SlideShare está sendo baixado. ×

The Global articipation Finance Summit, Istanbul 16th November 2017

Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Carregando em…3
×

Confira estes a seguir

1 de 14 Anúncio
Anúncio

Mais Conteúdo rRelacionado

Diapositivos para si (20)

Semelhante a The Global articipation Finance Summit, Istanbul 16th November 2017 (20)

Anúncio

Mais recentes (20)

The Global articipation Finance Summit, Istanbul 16th November 2017

  1. 1. 16th Nov, 2017 The Global Participation Finance Summit, Istanbul Humanist Finance and Pension Funds
  2. 2. You can be young without money but you can’t be old without it Tennessee Williams, an American playwright A thought
  3. 3. “There are more many people living longer and there are not enough people coming up behind them to support today’s system” 2017 Global Retirement Index by Natixis Asset Management An Afterthought
  4. 4. People around the world have largely positive word associations with retirement The traditional view of retirement, where people stop working altogether at a defined point in time, is fading as people’s relationship with work and leisure evolves. The majority of people (72 %) associate positive words with retirement - Excitement (8%) Poverty (13%) Opportunity (19%) Enjoyment (31%) Freedom (41%) Leisure (46%) India (20%) Hungary (30%) Germany (33%) USA (43%) China (52%) Netherlands (62%) Highest inWords associated with retirement Source: Sixth annual Aegon Retirement Readiness Survey
  5. 5. The Best Performers in 2017 Global Retirement Index & Perspectives New Zealand (5) Sweden (4) Iceland (3) Switzerland (2) Norway (1) Source: Natixis Asset Management Older populations forcing new thinking on policy Longer lifespans Larger liabilities - increased lifespans of members and the economic pressure of low interest rates have increased liabilities and created a pension gap, or funding shortfall Realizing the responsibility - individual investors believe that the responsibility for retirement funding is increasingly theirs Older but wiser - Achieving long-term retirement security will mean being resourceful
  6. 6. Findings from an HSBC Global survey 50% - Low interest rates mean they will need to work for longer 66% - Levels of national debt mean there will be less support for the elderly 77% - Retirees will have to spend more on healthcare costs in the future 34% - They will be financially comfortable in retirement, based on how their retirement saving is progressing 58% - They will continue working to some extent in retirement 47% - Property offers the best returns for retirement saving 10% say Millennials are in best position for a comfortable retirement, compared to 42% who think Baby Boomers are 26 - average age Millennials started saving for retirement 59 - average age Millennials expect to retire 58% say Millennials are paying for the economic consequences of previous generations 47% - New technology makes saving for retirement easier 55% - New technology will help give future retirees a better standard of living Source: HSBC
  7. 7. Following are the factors affecting retirement plans of people around the world Ageing population Rising healthcare costs Long term low interest rates Impact on people People are making sacrifices Exploring new sources of funding Adjusting their retirement expectations Some key Interpretations from Retirement Surveys Innovations in Pension Plans
  8. 8. Total pension fund asset in GCC by 2020 is estimated to be $602.4b and the figure may reach $938.6b by 2025 Pension funds have the mandate to invest in the local stock markets and they currently contribute about 5 per cent of the market cap. Saudi Arabia has the highest exposure to the stock market followed by Kuwait and Qatar. They serve as anchor investors with a long-term investment horizon, thereby providing support in times of crisis and reducing volatility. Pension funds, being one of the largest investor classes, are an important force for the stability and growth of GCC markets. GCC Scenario – Pension Funds Market Source: Marmore Mena Intelligence
  9. 9. State DB Plans exist (as of 2016 AUM $400 bn) in Middle East region - E&Y report Voluntary DC plans embraced by enlightened employers Regulatory reforms mandating DC plans will help investments in local capital markets Options available include National Provident Fund like in Singapore, HK, Malaysia etc, alternatively the Turkish Pension model of having dedicated licensed low cost schemes Pension initiatives and market reforms
  10. 10. Available choices and options (Defined Contribution plan) Post employment benefit Defined Contribution plan Provident Fund Insured Plan Defined Benefit plan Gratuity Pension Investment risk is to be borne by employee and not the enterprise Contribution rate is fixed, but the retirement benefit is variable Employer’s annual contribution to the pension is specified Contributions will be invested during the employee’s working career Pension amount will depend on level of yearly contributions and on investment return earned on the contributions Employees who anticipate changing jobs several times in their careers prefer these plans because accumulated amounts are usually easily cashed out or rolled over to a new employer’s plan
  11. 11. Defined Contribution plan at a Glance : Global Market and Asset allocation options During the last 10 years, DC assets have grown at a rate of 5.6% pa DC assets represent 48.4% of total P7 pension assets, in line with the established trend towards the growing dominance of DC plans DC plans - Asset managers and institutions could invest in SRI funds SRI funds DC Plans Other funds
  12. 12. According to the US SIF Foundation, Asset managers and institutions invested $8.72 trillion based on SRI principles in 2016 and there are more SRI choices for investors — about 1,000 mutual funds and other investment vehicles in 2016, up from 894 in 2014 This type of investing grew 33% between 2014 and 2016, according to a recent Morgan Stanley report. According to TIAA, SRI indexes can offer similar returns to broad market benchmarks like the Standard & Poor’s 500 index, without additional risk Socially Responsible Investing (SRI) Source: www.whitechurchfc.co.uk
  13. 13. Concluding remarks Reform is an art of the possible Ageing is inevitable and so is Retirement Can we plan post retirement life better ? Market will offer products to accept risk and offer return when it is needed most Regulators will help the Industry disrupt and innovate so as to enrich the market yet protect investors All stakeholders will contribute and make it POSSIBLE
  14. 14. Thank You Sohail Jaffer Managing Director Business Development Insurance Services Capita Middle East DIFC, PO Box 49983, Dubai, UAE Mobile: +97150 429 6876 Email: sohail.jaffer@capita.co.uk The information in this presentation does not constitute a sales offer, investment advice or an offer for the acquisition of financial products, and shall not in this regard imply obligations for the entity or anybody else towards the readers of the presentation. This presentation is solely intended to provide information on matters of interest for the readers and as such information is not meant to replace the knowledge and the judgment of the readers who should make all appropriate inquiries.

×