Manulife Financial has announced its newest innovation for group retirement savings clients with the launch of Group IncomePlus.
Following the 2006 release of Manulife’s IncomePlus GIF Select for individuas, group retirement savings clients said there was a need for a comparable guaranteed minimum withdrawal benefit option.
Developed specifically to meet the needs of these clients, Group IncomePlus is the first option available in Canada to guarantee group retirement savings plan members retirement income—for life.
“We’re delighted to bring Group IncomePlus to our clients and to the Canadian group retirement market,” says Sue Reibel, senior vice-president of group savings and retirement solutions, “An investment option that provides guaranteed retirement income for plan members while maintaining the flexibility plan sponsors value with capital accumulation plans is ideal for our marketplace.”
Group IncomePlus has no minimum initial or continuing contributions, making it easily accessible to all plan members.
• • •
U.K. Workers Save Past Retirement Age
More and more workers in the United Kingdom are saving money despite the fact they qualify for a government pension, according to statistics from the Department for Work and Pensions.
Among male employees over the age of 65, the proportion saving in a pension rose to 21% in 2006/07 from 6% in 2005/06.
For female employees between the ages of 60 and 64, 44% were saving in a pension, up from 35% in the same time period. Among female employees over the age of 65, the proportion saving in a pension rose to 15% in 2006/07 compared to 5% in 2005/06.
The state pension age in the U.K. is currently 65 for men and 60 for women.
“Employees are continuing to pay money into pensions at ages more usually associated with drawing money out,” explains Paul Macro, a senior consultant at Watson Wyatt. “Employers have responded to age discrimination rules by giving older workers more opportunity to benefit from company pension schemes and it looks like many have jumped at the opportunity.”
• • •
State Street Aligns Servicing Capabilities
State Street is aligning its global alternative investment servicing capabilities into one unit.
The alternative investment solutions unit combines the company’s hedge fund, private equity, and alternative risk offerings to provide a complete set of fund accounting, fund administration and risk services to hedge funds and private equity funds.
“The alternative investments market is estimated at US$4.2 trillion in global assets under management with a 16% compound annual growth rate,” says Jack Klinck, executive vice-president and global head of State Street’s alternative investment solutions team. “Combining our expertise in the hedge fund, risk and private equity servicing business under one name and unit provides our clients with dedicated solutions for these complex and rapidly growing market segments.”
The team has more than 2,200 employees with locations in Toronto, Boston, London, Tokyo, Sydney, New York, New Jersey, and Ireland.
• • •
Steady Hiring Climate Expected
Canadian employers expect a steady hiring climate for the third quarter of this year, according to the Manpower Employment Outlook Survey.
Twenty-four percent of employers anticipate an increase their payrolls in the next three months and 3% expect cutbacks for an overall net employment outlook of 21%. Seventy percent forecast no change and 3% are unsure of their staffing intentions for the upcoming quarter.
With seasonal variations removed from the survey data, the net employment outlook falls to 11%, which is a one percentage point increase from the previous quarter.
“This quarter’s net employment outlook indicates that the positive, yet conservative hiring pace, seen in the previous quarter, will continue into the next three months,” says Lori Rogers, vice-president of operations for Manpower Canada. “The labour market is still healthy with employers continuing to add to their payrolls, but they are telling us that they will do it in a cautious and measured way.”
More than 1,700 Canadian employers participated in the survey.