INCLUDING - AUSTRALIA - Super funds told to diversify; US - Engineers gear up to sue CalPERS; UK - Scots in dark about retirement
Federal Treasury has suggested Australian superannuation funds consider investing in mortgages as the government explores ways to support the struggling non-bank lending sector, the Sydney Morning Herald (SMH) has reported. SMH said the government was concerned that fewer lenders equated to less competition, which could mean higher costs for borrowers. Federal Treasury executive director, markets group, Jim Murphy told a federal parliamentary committee hearing in Sydney that many super funds had conservative investment strategies and might like to consider diversifying into mortgages, particularly following recent falls on global equity markets.
US - Engineers gear up to sue CalPERS
According to Reuters, a group representing engineers employed by the state of California is planning to sue the California Public Employees' Retirement System (CalPERS) to block it from investing in public-private infrastructure tie-ups. Through its infrastructure program, Calpers could invest up to 3% of its funds in transportation, energy, natural resources, utilities, water and communications projects. Reuters said the 13,000-member Professional Engineers in California Government would file its lawsuit today against CalPERS because the pension fund's investment policy on the partnerships threatened public-sector jobs.
UK - Scots in dark about retirement
The Scotsman reported that almost four in ten Scots nearing retirement had no idea how much income they would get from their pension savings. Research published by Aegon UK revealed that, while 35% of Scots between the ages of 50 and 65 anticipated getting less than £10,000 a year from their pension savings in retirement, 39.6% did not know how much annual income their combined pension pots would provide.
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