September 2024
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
News,
Read more...
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
News, ,
Read more...
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
News, , , ,
Read more...
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
News, ,
Read more...
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
News, ,
Read more...
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
News, ,
Read more...
13Sep

Pension Risk Transfer Monitor

By Legal & General  In this latest edition of our Pension Risk Transfer (PRT) Monitor, we off¬er a side-by-side analysis of the two largest PRT markets globally – the US and UK. We expect PRT volumes to remain elevated across the next decade. Based on current levels, more than £250 billion of combined UK and US volumes are likely to be secured by insurers in the next 3 years alone. In this bulletin we reflect on the first half of...

September 13, 2024
Books, Books, Reports, System Characterization, , , ,
Read more...
13Sep

UK. Pensions and private capital leaders propose solutions to boost private markets investment

The government should use the upcoming value for money framework to help pension schemes shift their focus from short-term considerations to long-term returns in defined contribution (DC) pensions, leaders from the pensions and private capital industry have said. The British Private Equity and Venture Capital Association (BVCA)-led group advocated for this approach as data had demonstrated that private capital funds generate the highest average returns compared to alternative UK assets. In particular, BVCA analysis revealed that, since 2001, investors in private...

September 13, 2024
News,
Read more...
12Sep

UK retirement security reaches record high in GRI

Retirement security in the UK has improved over the past year and reached a record-high position of 14th place on the Natixis Investment Managers (IM) Global Retirement Index (GRI), the firm has revealed. The UK rose two places in the index over the past year, outperforming France, Finland, Sweden, and the United States, with the improvement driven by increases in health spending per capita. Overall, the UK scored 74 per cent on its retirement security, up from 67 per cent and...

September 12, 2024
News,
Read more...
11Sep

UK. State pension set to rise by £460 next year

The new full state pension is expected to rise by £460 a year from April, latest wages data suggests. Under the arrangement called the “triple lock”, the state pension goes up each year by either 2.5%, inflation, or average earnings growth – whichever is the highest figure. Earnings figures for the three months to July are used for the yearly increase, and these showed total pay rose at an annual rate of 4%, much higher than inflation. The news comes as the government...

September 11, 2024
News, ,
Read more...