January 2025
13Jan

Pension managers urge UK to ditch ‘megafund’ scale test

UK pension managers have objected to government plans to force the creation of a series of “megafunds”, arguing it could stifle competition and hamper investment returns. Fund managers say that the government should focus on optimising value for savers rather than applying an “arbitrary” scale test for pension funds that could discourage new market entrants and force some funds to merge with underperforming peers. The criticisms come after the government said last year defined contribution (DC) workplace pension schemes should consolidate...

January 13, 2025
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10Jan

Pensions Investment Review: Unlocking the UK pensions market for growth

By Department for Work and Pensions & HM Treasury In July 2024 the Chancellor announced a landmark Pensions Review, the first phase of which was purposed with exploring new ways to boost investment, increasing saver returns and tackling waste in the pensions system. The joint HM Treasury-Department for Work and Pensions Minister Emma Reynolds MP was asked by the Chancellor to lead the first phase of the review, which is focussed on four specific areas. Get the report here

January 10, 2025
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10Jan

UK. What the bond market turmoil means for your mortgage, pension and savings

The bond market sell-off has revived fears about rising borrowing costs after the crisis that followed Liz Truss’s disastrous mini budget in 2022. However, experts are suggesting there is no need to panic. Here is what it may mean for mortgages, pensions and savings. Pensions If you are aged under 50 and are saving into a pension, it is unlikely any of your money will be in bonds. It is instead probably going into stock market-based investments, and any short-term fall...

January 10, 2025
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08Jan

UK politics needs to take a long-term view on social care

Past attempts to reform social care by both Labour and the Conservatives have failed.  The recent commission of an independent review led by Baroness Louise Casey into the state of social care provides a beacon of hope. Nicholas Barr argues that a long-term view on social care is the only plausible solution. Enjoying this post? Then sign up to our newsletter and receive a weekly roundup of all our articles. Social care in England, though a known problem, has remained chronically underfunded for decades, and has...

January 8, 2025
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06Jan

Government must collaborate with industry to ensure pension investment in UK

In her first Mansion House speech as Chancellor, Rachel Reeves set out a vision to harness the UK’s pension capital to drive investment and growth. The government's aims are worthy and can set industry on a path to unlocking investment opportunities; however, there are several challenges ahead if their ambitions are to be realised. As a UK business, and one whose sponsors almost entirely operate in the UK, Independent Governance Group (IGG) has an inherent interest in supporting continued and sustained...

January 6, 2025
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December 2024
23Dec

‘Heartless’ multinationals exploiting pensions loophole for UK workers

Some of the world’s richest companies are accused of exploiting a loophole in pension law to freeze increases in payouts for many former UK employees, despite the cost of living crisis. The companies, which include Hewlett Packard Enterprise (HPE), American Express and Pfizer, are being urged to “do the right thing” and increase these frozen pension payouts in line with inflation. MPs have condemned the failure of companies to increase the payments in the face of high inflation in recent years as...

December 23, 2024
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19Dec

UK Government denies compensation to Waspi women

Prime Minister Keir Starmer has defended the decision to reject compensation for women hit by changes to the state pension age, arguing that the taxpayer "simply can't afford the tens of billions of pounds" in payments. He added that "90% of those impacted knew about the changes that were taking place". However, during Prime Minister's Questions, Sir Keir was repeatedly pressed on the government's decision, with one MP calling for a vote. The Women Against State Pension Inequality (Waspi) campaign group say that...

December 19, 2024
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17Dec

U.K. Chancellor Rachel Reeves to delay second part of government pensions review

U.K. Chancellor of the Exchequer Rachel Reeves has delayed a critical second phase of a government review into the pensions sector, according to reports in the Financial Times. In July this year, Reeves had announced a pension review to “boost growth and make every part of Britain better off,” according to an official government release. The interim report of the first phase was published at a Mansion House event on November 14, with the second phase and publication of a...

December 17, 2024
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13Dec

Aon UK DC Pension Tracker – Q3 2024: State Pension increase drives rise in savers’ expected incomes

By Aon Over Q2 as a whole, the Aon UK DC Tracker rose which suggests the expected future living standard in retirement provided by defined contribution (DC) savings was higher than at the end of the previous quarter. All members benefited from the April 2024 increase in the state pension, which increased from £10,600 to £11,500 per year. The oldest saver saw the largest proportionate increase from this change as the state pension makes up a larger proportion of their expected retirement income. Positive returns...

December 13, 2024
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13Dec

UK. DC retirement expectations fall for young savers amid ‘flat’ investment returns

The expected future living standard in retirement provided by defined contribution (DC) savings fell for young savers in Q3, following "flat" investment returns, Aon’s UK DC pension tracker has revealed. The youngest saver’s expected income in retirement decreased by around £170 p.a. (0.5 per cent), driven by the increase in expected inflation and a decrease in the expected future investment return assumptions post-retirement. An increase in future expected return assumptions before retirement partially offset these decreases. However, older savers’ expected retirement...

December 13, 2024
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