October 2017

03Oct

UK. May’s Brexit Budget Offer Is Conditional on Trade, Officials Say

The U.K. will leave a 20 billion euro ($23 billion) hole in the European Union’s budget unless the bloc agrees to give Theresa May the sweeping Brexit trade deal she wants, according to senior British officials. Britain won’t fulfill May’s offer to cover the U.K.’s share of the EU budget through 2020 without a broader Brexit deal, said the officials, speaking on condition of anonymity. The U.K. also hasn’t accepted that it’s liable for a share of the pensions of...

October 3, 2017
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03Oct

UK. Savers who transfer pensions are ill-advised in 53pc of cases, says watchdog

Savers trying to swap their "final salary" pensions for cash face a crackdown from the City watchdog following a damning report into the quality of financial advice they are receiving. Growing numbers of people are swapping final salary pensions for "defined contribution" plans. This involves giving up guaranteed, inflation-proofed income for life, in return for often highly attractive cash offers and greater flexibility over how pensions can be spent. It is thought about 80,000 transfers have taken place this year...

October 3, 2017
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02Oct

UK. Millions to miss out on self-employed pensions revolution

Government plans to solve the self-employed savings crisis are in danger of being derailed as new research reveals as many as three million workers are set to miss out. Last year this newspaper revealed the Department for Work and Pensions was to bring the self-employed into an existing system that means all employers must provide pensions for their staff. The set of rules, known as "automatic enrolment", was introduced in 2012 and have meant an extra eight million are now saving for a...

October 2, 2017
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September 2017

28Sep

UK. Millions may lose promised pension payout

Three million savers in defined benefit pension schemes only have a 50/50 chance of receiving the payouts they were promised, a study has concluded. Some employers were under pressure to meet their pension obligations, the Pensions and Lifetime Savings Association (PLSA) said. High-profile cases such as the BHS collapse have highlighted concerns over the future of workplace pensions. The PLSA said one solution could be the pooling of resources into "superfunds". This would allow companies to pay a fee to transfer...

September 28, 2017
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28Sep

UK. Consultants back ESG initiative for pension schemes

The UK pensions regulator’s guidance that pension schemes take into account environmental, social and governance (ESG) factors where they are financially material received a boost from investment consultants. Twelve investment consultant firms have agreed to ensure clients are made aware of The Pensions Regulator’s (TPR) guidance. The firms are Allenbridge, Aon Hewitt, Barnett Waddingham, bfinance, Cardano, Hymans Robertson, JLT Employee Benefits, Lane Clark & Peacock LLP, Mercer, Quantum Advisory, Redington and Willis Towers Watson. In a joint statement they said:“We believe...

September 28, 2017
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27Sep

Soaring EU pensions could add £10bn to Brexit bill, accounts reveal

Britain is under pressure to add £10 billion to its Brexit bill to cover the soaring pensions of retired EU civil servants, new accounts have revealed. European Union figures published this week show that the cost of pensions liabilities rose by 5.4 per cent last year to a total of £59bn (€67bn). The overall budget liabilities the UK is expected to pay a share of -  as part of the financial settlement - has also risen from €226bn to €234bn. Earlier this week...

September 27, 2017
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25Sep

UK. Labour to offer some women earlier retirement option

Government changes to the retirement age have been "chaotic", shadow work and pensions secretary Debbie Abrahams will tell Labour's conference later. Many women who expected to retire at 60 must now work several years longer before receiving a state pension. Ms Abrahams will say her plan would mean pension security for thousands. Her change would benefit women born between 1954 and 1960. "This will ensure that those who have suffered the consequences of this government's chaotic mismanagement of the state pension...

September 25, 2017
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21Sep

UK watchdog to investigate conflicts of interest among pension fund advisers

Britain's competitions watchdog will look into the advice given by consultants to pension schemes and other institutions managing over 1.6 trillion pounds ($2.2 trillion) of funds, to see if there are conflicts of interest, it said on Thursday. The Competition and Markets Authority (CMA) will assess whether investment consultants offer a poor level of service and whether difficulties comparing and switching consultants provide little incentive for them to compete for customers. In addition, it will investigate if there are barriers to...

September 21, 2017
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18Sep

UK. Expats face post-Brexit pension ‘cliff edge’ warns influential MP

The chair of the influential Treasury committee has called for urgent action to address the risk pension payments to expatriates from UK insurers may be blocked after Brexit. Nicky Morgan (pictured), chair of the influential committee of MPs, has written to the chancellor, to draw attention to the issue and ask if it would be addressed in the upcoming round of talks between the UK and EU, the Guardian reports. The problem centres around passporting rights, which allow UK and...

September 18, 2017
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14Sep

UK’s pension investment advisers to face full competition probe

Britain’s competition regulator has launched an investigation into investment consultants following concerns about conflicts of interest in an industry advising on the management of over 1.6 trillion pounds ($2 trillion) of pension and other funds. The Financial Conduct Authority said on Thursday it has referred its concerns to the Competition and Markets Authority for a full investigation, the first time it has referred a case to the CMA as part of a broader effort to improve value for money and...

September 14, 2017
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