July 2025
28Jul

Will the US open 401(k) plans to private markets?

The likelihood that the Trump administration will seek to open up 401(k) retirement savings plans to private markets through an executive order seems to be rising. According to The Wall Street Journal, the order may instruct the labour department and the Securities and Exchange Commission to offer guidance on how to include private asset options in 401(k) plans, which comprised US$12.4 trillion in defined-contribution plans alone as of end-2024. Such proposals have long been surrounded by doubts about their viability for retail...

July 28, 2025
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28Jul

UK pension funds commit further £118m to Octopus affordable housing fund

Octopus Capital said it had raised a further £118m (€136m) for its Affordable Housing Fund from three UK local government pension schemes (LGPS), taking the fund’s total funds under management, including co-investment capital to over £360m. The new investment has come from Strathclyde Pension Fund, a Glasgow-based LGPS, with £50m, London CIV with £58m, and Avon LGPS with £10m. Strathclyde is a new investor, while the London CIV and Avon investments are building on previous contributions to a fund that has attracted...

July 28, 2025
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25Jul

Unintended Consequences: How Scaling Back Public Pensions Puts Government Revenues at Risk

By National Conference on Public Employee Retirement Systems The argument that taxpayers cannot afford public pensions has gained traction despite a woeful lack of empirical evidence to support it. Legislators across the nation are contemplating options for the future funding of public-sector worker retirement benefits at a time when competition for finite state and local resources is fierce. The reasons are familiar: the lingering effects of recession and misguided budget priorities have taken a toll. Time and again, defined-benefit pensions...

July 25, 2025
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25Jul

Greener Pensions, Greener Choices: Linking Investments to Sustainable Behavior

By Olga Balakina, Charlotte Christiansen & Malene Kallestrup Lamb This paper examines how offering sustainable investment options influences sustainable consumption behavior. We combine a natural experiment in which individuals receive an option to switch to a pension plan with a strong sustainability profile with detailed household register data. This sustainable option improves sustainable consumption, as reflected in electric vehicle adoption and reduced vehicle emissions. The effect is primarily driven by individuals who do not choose the sustainable plan. We show that...

July 25, 2025
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24Jul

Why nature-related risk is the next strategic priority for pension schemes

Climate-related risk is now firmly embedded in trustees’ responsibilities and consciousness. However, the broader environmental agenda, including biodiversity loss, natural capital depletion and ecosystem degradation, impacts pension schemes (through investment implications, economic stability generally and the long-term financial wellbeing of members) and now demands board-level attention. With the World Economic Forum ranking biodiversity loss among the most severe global risks, stakeholders are increasingly recognising that reporting frameworks should reflect its value. In 2024, 320 organisations from over 40 countries (accounting...

July 24, 2025
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22Jul

US. New York State Pension Bulks Up on Private Equity in $3B Spree

New York’s $273 billion state pension fund is bulking up on private equity investments, earmarking more than $1.4 billion toward the asset class in March alone, according to its monthly transaction report. The spree comes after the New York State Common Retirement Fund committed about $500 million during the previous three months combined. The allocations to private equity investments accounted for nearly half of the $3.1 billion commitments doled out by the NYSCRF in March. The largest of those was a $500 million commitment to the...

July 22, 2025
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22Jul

UK. Most pension schemes not making use of impact reports in investment decisions

Whilst most UK pension schemes are receiving impact reports, very few are reading them closely or using them to guide investment decisions, research from Pensions for Purpose has revealed. The report, commissioned by Impact Frontiers, revealed that although the UK’s impact investing market is growing fast, expanding over 10 per cent annually between 2021 and 2023, many institutional investors remain unsure how to use impact data meaningfully. According to the report, whilst most pension funds assess whether their managers produce impact...

July 22, 2025
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18Jul

US. Institutional investors warm to crypto but demand still nascent

Bitcoin's surge to a record this week has reignited questions about the role institutional investors are playing in pushing it higher, with analysts suggesting their role is still in its infancy. The world's largest cryptocurrency earlier this week surged to a record above $123,000, receiving a boost on the expectation of pro-crypto policies from Washington. While buzz around digital assets has increased, there is room for demand from institutional investors to grow as pension funds and other long-term buyers add bitcoin to...

July 18, 2025
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18Jul

UK. Webb sets out ‘three tests’ for govt pension review

Former pensions minister and LCP partner Steve Webb has set out ‘three tests’ against which the second stage of the government’s pensions review should be judged. Focusing on the adequacy of pension savings, Webb said the first test needs to be questioning whether the review is given a ‘free hand’, including recommending reforms which will cost the government money. Most changes to the system, including getting people to save more, will have a cost implication, such as through higher costs of...

July 18, 2025
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18Jul

When Uncertainties Matter: the Causal Effect of Cryptocurrency Investment on Retirement Hardship Withdrawals

By Zefeng Bai, Pengcheng Wang & hengwei zhang Cryptocurrencies are invested in by approximately 15% of U.S. households. However, the high volatility of these assets poses substantial financial risks, particularly as 40% of U.S. households already face potential retirement shortages. Therefore, the present study aims at investigating the impact of cryptocurrency investment on retirement borrowing. Our causal analysis of 1,912 respondents revealed that cryptocurrency investors are 7.4% more likely to make a hardship withdrawal from their retirement accounts. This study provides...

July 18, 2025
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