August 2024
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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01Aug

UK. Savers warned of pensions impact on deforestation in Jane Goodall ad campaign

Jane Goodall and Genesis frontman Peter Gabriel have joined forces for a new ad campaign that warns UK savers of their pension investments’ hidden impact on global forests. The “Saving Jane” advert released on Wednesday shows an animated version of the zoologist saving up money in a pension pot to visit a tropical rainforest in Sumatra, Indonesia, only to discover the money was invested in companies destroying the natural world she wanted to protect. The film, which features a re-recording of...

August 1, 2024
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July 2024
31Jul

Pension funds target index providers as UK relaxes listing rules

A group of UK pension schemes are engaging index providers on their inclusion rules following recent listing changes in the UK.  This month, the Financial Conduct Authority (FCA) confirmed reforms to the UK’s listing regime in a bid to encourage more companies to list.   The new rules will merge the premium and standard segments on the London Stock Exchange into a new single segment, meaning firms choosing to IPO in the UK will have more flexibility to adopt dual-class share structures. Leading up and in...

July 31, 2024
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30Jul

New superfund guidance reshapes UK pension management

The UK’s Pensions Regulator (TPR) has unveiled updated guidance for superfunds, introducing pivotal changes that accountants and financial planners must heed. The guidance, released on Friday, marks a significant shift in TPR’s approach to capital release and scheme management, potentially unleashing a wave of innovation in the pensions market. At the heart of the update is a change to capital release rules. Previously restricted to benefit buyout scenarios, superfunds can now release capital up to twice yearly, subject to meeting specific triggers and...

July 30, 2024
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29Jul

UK. Lifetime annuity rates rise to over 7% in June

Lifetime annuity rates have continued to improve in 2024, rising to 7.08 per cent in June for a healthy 65 year old, according to the Standard Life Annuity Rate Tracker. This is around a 4 per cent increase from the average rate of 6.81 per cent in January and a 2.64 per cent improvement from 6.9 per cent in March. This would add an extra £3,659 to the average total lifetime income for a 65 year old man and £4,059 to...

July 29, 2024
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