October 2024
01Oct

UK. Industry must work to improve communication on sustainable pensions

There is an “enormous amount of work” to do to improve communication with savers about sustainable pensions, Harmonics founder and CEO, John Dithfield, has argued. Speaking at a Good Money Week event yesterday (September 30), Dithfield discussed the complexities of sustainable pensions and how difficult it can be for savers to fully understand them. “What should savers look for in a pension? I think it is very difficult really,” he said. “The real problem for people is the complexity of understanding what’s...

October 1, 2024
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September 2024
30Sep

UK. Pension funds generating more cash than savers expect, finds research

Pension funds are generating more returns than most Britons expect, according to new research which suggests many savers underestimate how much cash their pension can generate. Industry data shows that leading pension funds have brought average annual returns of 7.72% over the last five years for people who are 30 years away from retirement. The same researchers found in a previous survey that over a third of savers aged 18 to 54 only anticipate returns between 5% and 7%. The findings underline the...

September 30, 2024
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30Sep

Pension investors seek better means to force action on climate

Pension savers across the world are increasingly looking to invest their money in ways that help the climate. And, for those so inclined — whether as an employee with a workplace scheme or someone going it alone with a private pension — there are plenty of options available. Since 2022, UK pension schemes with more than £1bn in assets under management have been legally required to consider and report on climate-related risks and opportunities. Each relevant scheme should have a...

September 30, 2024
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27Sep

Pension scheme assets – how they are invested and how and why they change over time

By The Pensions Policy Intitute We know both ‘quite a lot’ and ‘not enough’ about the assets that back current and future retirement incomes. Quite a lot because there are several sources of data that map pension fund assets and the way in which they are invested. Not enough because there are gaps in our knowledge and a multiplicity of data sets that classify assets in slightly different ways. The timing of different reports can also create difficulty mapping assets...

September 27, 2024
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27Sep

UK. FCA data reveals surge in pension access without advice

The latest FCA retirement income data for 2023/24 reveals a significant shift in pension access and withdrawals, reflecting ongoing economic pressures and evolving strategies within retirement planning. The total number of pension plans accessed for the first time surged by 19.7%, reaching 885,455 compared to 739,652 in 2022/23. This substantial increase indicates that more individuals are turning to their pensions to manage their financial needs, likely influenced by the cost-of-living crisis forcing people to dip into their pension pots to...

September 27, 2024
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26Sep

UK. Industry weighs in on government’s pension investment review

Industry experts have stressed the need to put member security at the forefront of any changes to the pension market, cautioning the government against potential mandating or legislating for particular investment allocations. The government recently launched a call for evidence to help inform the first phase of its pension investment review, which will aim to boost investment, increase pension pots and tackle waste in the pensions system. In its response to the consutlation, the Society of Pension Professionals (SPP) agreed that scale can deliver...

September 26, 2024
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25Sep

UK. TPR data shows improvements in DB pension funding

The statistics show that overall, 47% of schemes reported a surplus on the Technical Provision (TP) funding basis in tranche 17 – schemes with effective valuation dates from 22 September 2021 to and inclusive of 21 September 2022 – a significant increase on the 32% in surplus in their previous valuation cycle (tranche 14). The average funding level had increased by 5% (97% in tranche 17 (median: 99%), compared to 92% in tranche 14 (median: 93%)) and recovery plan lengths...

September 25, 2024
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24Sep

UK. Pension schemes should not ignore SDR

With the rollout of the FCA’s Sustainability Disclosure Regulations (SDR) now well underway, pension schemes should consider how their ESG and sustainability objectives could be impacted by the regime in the long-term, according to AXA Investment Managers (AXA IM). One of the key components of SDR is fund labelling, with qualifying asset managers having been able to use the four new sustainability labels for asset managers – Focus, Improvers, Impact and Mixed Goals – from 31 July 2024. Being a voluntary...

September 24, 2024
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23Sep

UK pension fund Nest agrees tie-up to invest up to £1bn in build-to-rent

The UK’s state-backed pension scheme has agreed a tie-up with insurer Legal & General and Dutch pension fund manager PGGM to invest up to £1bn in build-to-rent properties, in a deal hailed by the UK government as an example of how the country’s retirement savings can be directed towards its homebuilding effort. The groups are today announcing a partnership with an initial £350mn commitment of combined investment, expected to grow to £1bn in the coming years, to build and manage...

September 23, 2024
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19Sep

UK. NHS retirees with six-figure pensions double in a year

The number of retired NHS workers receiving pensions paying £100,000 has more than doubled in a year. Nearly 2,000 former consultants and senior staff now have pensions paying six-figures – up from 890 last year and 698 in 2022. Britain’s public sector pension debt has swollen to nearly £5 trillion, which is the equivalent of £173,000 per household. The NHS retirement plan, which is the nation’s largest public sector pension scheme, paid £12bn to its retirees in the 2023-2024 tax year, official documents show. Most...

September 19, 2024
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