Not great, not terrible – Slovenia’s second pension pillar (update for 2021)

Since the Slovenian ministry of labour just released fresh stats for the second pension pillar, this just calls for an updated article on the evolution of the second pension pillar represented by defined contribution retirement plans.  In December 2021 the number of employees saving in the second pension pillar in Slovenia reached a record 585.154Continue reading “Not great, not terrible – Slovenia’s second pension pillar (update for 2021)”

Ireland to introduce automatic enrolment in retirement plans

Ireland just published ambitious plans to introduce automatic enrolment (AE) in retirement plans from 2024 onwards and since I always back AE as the single most important policy that can help people save for retirement, it’s well worth to look at the details, which are quite interesting and some came with some surprise for me.Continue reading “Ireland to introduce automatic enrolment in retirement plans”

Mandatory lifetime income projections (case of Slovenian pension funds)

In many countries with developed defined contribution retirement plans, like the US, UK and Australia, the debate around the decumulation phase of retirement saving is taking centre stage, as an ever growing number of plan members are entering retirement and looking to convert their savings into an income stream.  End of the day, that wasContinue reading “Mandatory lifetime income projections (case of Slovenian pension funds)”

Lessons for retirement saving from the movie Don`t Look Up (Netflix)

End of December Adam McKay’s new movie Don’t Look Up was released on Netflix bringing to us a fun satire of the current state of our society. An acclaimed cast, including Leonardo DiCaprio, Jennifer Lawrence, Jonah Hill, Meryl Streep and Cate Blanchett, show us thru a satiric lens, how our society is totally oblivious toContinue reading “Lessons for retirement saving from the movie Don`t Look Up (Netflix)”

What a shocker – automatic enrolment in retirement plans works (How it started and how to make it better)

Automatic enrolment (AE) in retirement plans is far from a new idea, in fact it’s now more than two decades old, but I’m still surprised how many people in the industry (finance, insurance, retirement, …)  and also in the government, are not aware of how powerful it really is. Every time the debate in myContinue reading “What a shocker – automatic enrolment in retirement plans works (How it started and how to make it better)”

The forever young ideology does not help retirement saving – what to do?

While vacationing I try to catch up on my reading (as much as family life allows), and once in a while to take a break from more serious reading, I browse over my wife`s “lifestyle” magazines that she usually reads on the beach. Scanning over them this year, what struck me was how many articlesContinue reading “The forever young ideology does not help retirement saving – what to do?”

Assets and members of Slovenia’s second pension pillar on the up, coverage rates are down

End of 2020 the number of employees saving in the second pension pillar in Slovenia reached a record 574.219 members. This means the coverage rate is roughly 60 % of all persons in employment, which is a fairly decent rate for a 20 year old voluntary system, but if we correct the number and deductContinue reading “Assets and members of Slovenia’s second pension pillar on the up, coverage rates are down”

Did the stock market volatility in 2020 affect asset allocation of pension plan members?

We all remember the roller coaster ride stock markets had in the year 2020 that started in march with a sharp drop in stocks of almost all sectors and industries, followed by equally or even higher rises of some industries in the later months of the year. All in all, most of the markets recoveredContinue reading “Did the stock market volatility in 2020 affect asset allocation of pension plan members?”

Saving for retirement with your credit card (Overcoming loss aversion and temporal discounting)

Why would anybody in their right mind pay pension fund contributions in installments with his or her credit card is the question most would ask after reading the title, but if you give me a bit of “credit” I will try to explain the logic.  Retirement saving is unfortunately plagued with behavioral biases that negativelyContinue reading “Saving for retirement with your credit card (Overcoming loss aversion and temporal discounting)”

Tax incentives for retirement saving don`t work (what does?)

Most countries, if not all, encourage saving for retirement by taxing retirement savings in private pension plans more favourably than savings in alternative vehicles. The goal is to increase how many people save for retirement and how much they save and with that enable them a better life in retirement.  Most countries apply a variantContinue reading “Tax incentives for retirement saving don`t work (what does?)”