SWITZERLAND - Bruno Gehrig, chairman of insurance group Swiss Life has praised the government's recent decision to cut the minimum pension fund return rate to 2.25%, according to an interview with Swiss Sunday paper, SonntagsZeitung.
But Gehrig warned that the insurance group, which previously announced 1,500 job cuts, would have to improve earnings since the capital base is too thin.
In the interview, Gehrig admitted that the group had to improve its equity capital which comprises about Sfr12bn in shares and hedge funds, compared to an equity capital of Sfr4.6bn.
Commenting on the overall economic situation, he was quoted as saying that the US economy should grow in the second half of 2003 by 4%, while there are also weak signs of a revival in Germany. For Switzerland, he predicted economic growth of just 1% for 2004.
The UK must do more to address its ageing demographics, says Mercer, as its global pension index shows the country static in its rankings.
Retirees could benefit from more sustainable income and higher death benefits by including guaranteed income in the asset mix of their portfolios at retirement, according to research by Milliman.
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.