August 2024
19Aug

UK. Pension review to start with consolidation of DC market

The first phase of the government’s pensions review will include driving scale and consolidation of defined contribution workplace schemes. Announced on Friday (August 16), the initial phase also aims to tackle fragmentation and inefficiency in the local government pension scheme through consolidation and governance. Experts have urged the government to keep the interests of savers at the forefront. In addition, it will look at the structure of the pensions ecosystem and achieving a greater focus on value to deliver better outcomes for...

August 19, 2024
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15Aug

UK. Government reportedly considering raising minimum pension contribution for employers – is it a good idea?

Experts say the change could be a ‘major boost’ to employees’ financial security but to minimise the impact on businesses, increases should happen gradually Chancellor Rachel Reeves is considering increasing the minimum level for employer pension contributions, according to a report by The Telegraph. The government has had discussions with pension providers and asset managers about how aspects of Australia’s pension system could be replicated in the UK, including employer contributions, the newspaper reported. Employers in Australia must currently contribute 11.5 per...

August 15, 2024
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14Aug

UK’s Just Group beats first-half profit estimate as demand for pension insurance soars

Just Group (JUSTJ.L), opens new tab's first-half profit beat estimates on Tuesday, and the British insurer now expects full-year earnings to surpass its previous expectations on demand for pension insurance, sending shares up as much as 18% in early trading. The stock hit its highest since June 2018 on Tuesday at 139 pence after the London-listed company said it expects to "substantially" exceed its 2024 operating profit forecast in March - of over 420 million pounds - twice its profit in...

August 14, 2024
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09Aug

Largest UK pension fund sells off Israeli assets amid member anger over Gaza

The UK's largest pension fund has sold off £80m ($101m) in assets linked to Israel amid internal pressure from members, the Financial Times has reported. The Universities Superannuation Scheme (USS) manages investments totalling £79bn in total and has more than 500,000 members who work for universities and higher education institutions in the UK. Pressure has grown on the fund to withdraw its Israeli investments in light of the ongoing war on Gaza and Israel's longstanding occupation of Palestinian land. At least, 40,000 Palestinians have been killed in Israel's ongoing military...

August 9, 2024
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08Aug

Chancellor Reeves: Pension funds can fire up the UK economy

Chancellor Rachel Reeves wants UK to learn lessons from ‘Canadian model’ ahead of meeting with major Canadian retirement funds Reeves confirms first Mansion House address will focus on financial service sector’s role in delivering more investment and financing growth as work continues to fix foundations of the economy, rebuild Britain and make every part of the country better off The Chancellor Rachel Reeves has called on pension funds to “learn lessons from the Canadian model and fire up the UK economy”....

August 8, 2024
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08Aug

Why UK pensions revamp can benefit from leaning into Australia’s model

In the wake of the UK government's “pot for life” pension proposal, industry experts are drawing lessons from Australia's superannuation system. The proposal, reaffirmed in the 2024 Spring Budget, aims to simplify pension management, reduce costs, and improve retirement outcomes for British citizens. However, to successfully implement an Australian-style system, the UK would need to establish a robust payments infrastructure, implement regulatory reforms, and most likely launch a comprehensive consumer education program. A daunting task, but major reforms are necessary to create...

August 8, 2024
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06Aug

UK. 170,000 retirees living abroad have had their state pensions frozen since 2003

Around 170,000 retirees living across the world have had their state pensions frozen without an increase for at least 20 years, data obtained by i show. State pensioners living in the UK see their pension increased each year by the triple lock policy – which sees pensions go up in line with inflation, average wage growth or 2.5 per cent (whichever is highest) – but this does not happen for those living overseas unless they are living in a country which has a reciprocal agreement with the UK. It means British pensioners living...

August 6, 2024
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06Aug

Labour should increase pension contributions to get the UK economy going again

In the first few weeks in office Labour has announced a number of different policies that Rachel Reeves hopes will get the British economy firing on all cylinders again. One policy that has received less attention – a review into pension adequacy – suggests that important changes might be on the way, changes which would support the Chancellor’s ambition to create a high investment economy. The big question for this review will be whether auto-enrolment pension contributions should be increased. Currently, the minimum...

August 6, 2024
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06Aug

UK. Retirees seeking guaranteed income from pensions warned annuity rates set to fall

Now might be a good time buy an annuity for those savers looking for the safety of some guaranteed income in retirement – as annuity rates look set to fall. After the Bank of England cut the benchmark interest rate on 1 August, bets have snowballed that global central banks will have to slash rates as jobs market and recession fears in the US have suddenly mounted. Henrietta Grimston, Financial Planning Director at wealth management firm Evelyn Partners,observes: ‘That is sending...

August 6, 2024
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02Aug

UK. DWP data shows reduction in pension saver opt outs

The number of those opting out of workplace pensions has reduced in the last year, while the amount saved has not increased, data from the Department for Work and Pensions (DWP) has shown. The latest update for workplace pensions from the DWP showed eligible employee participation in workplace pension schemes has reached 88% - significantly higher than in 2012, when this was measured at 55%. The data also showed workplace pension participation remained broadly the same as that from 2019 to 2022. In...

August 2, 2024
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