June 2023
22Jun

UK. Pension policy risks being ‘stuck in a previous era’

  Pension policy risks being 'stuck in a previous era' rather than reflecting the realities of scheme funding levels today, according to LCP partner Steve Webb. Giving evidence to the Work and Pensions Select Committee, Webb pointed out that back in 2014. the combined deficit of DB pension schemes stood at nearly £400bn. This is in stark contrast to the latest figures which show a surplus of over £400bn. "For many of our clients, the issues we are now discussing are about managing...

June 22, 2023
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19Jun

UK. Fifth of savers want oil excluded from their pensions

A growing number of pension savers would like to see the oil sector completely excluded from their pension fund's investments. Some 21 per cent of pension savers say they want oil to be axed from their pension, according to a survey from online pension provider PensionBee. This has jumped from 15 per cent of pension savers last year. Alongside oil, the main investments people want excluded from their pensions are companies contributing to deforestation, habitat destruction and predatory lending. Pension savers also believe...

June 19, 2023
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16Jun

UK. BOE Issues Fresh Warning Over Risks in Pension Transfers

The Bank of England has warned firms offloading pensions in a multibillion-pound market that they need to improve the way they manage reinsurance risks. The Prudential Regulation Authority, part of the BOE, wrote to life insurers on Thursday to highlight its concerns about the use of “funded reinsurance,” where insurers pay upfront to transfer the risk of pensioners living longer to another firm. If one of the major reinsurers were to fail, the original insurer could be exposed to “sub-optimal portfolios”...

June 16, 2023
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15Jun

U.K. effort looks to bring parity to retirement savings

U.K. retirement funds, consultants and money managers are gearing up to jointly tackle retirement inequality. Starting with the gender pension gap — in which males hold vastly more savings than women — a newly formed coalition is looking to develop new planning tools and guidance for plan participants. The Pensions Equity Group, a collaboration of retirement industry professionals, is working to help achieve better equality of retirement savings by developing ways to consistently measure retirement inequalities and potentially press for needed...

June 15, 2023
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14Jun

UK. Govt extends National Insurance contribution deadline

The government has extended the deadline for paying voluntary National Insurance contributions by nearly two years, with taxpayers to be given until 5 April 2025 to boost their state pension entitlement. According to the government announcement, the extension aims to ensure that people have more time to properly consider whether paying voluntary contributions is right for them and ensure that no-one misses out on the possibility of boosting their state pension entitlements. The original deadline was extended to 31 July 2023...

June 14, 2023
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13Jun

UK pension fund fights appeal in landmark fossil fuels lawsuit

Britain's biggest private pension scheme on Tuesday asked a London court to block a landmark lawsuit over its alleged failure to devise a credible plan to divest from fossil fuels. The 82 billion-pound ($103 billion) Universities Superannuation Scheme (USS) is facing legal action from two of its members over its continuing investments in coal, natural gas and petroleum. The lawsuit was blocked last year by London's High Court, but the two academics behind the claim asked the Court of Appeal to...

June 13, 2023
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12Jun

UK. What can be done about the ‘great gender pension chasm’?

Thank you for the depiction of the “great gender pension chasm”, (Women’s private pensions worth 35% less than men’s in Great Britain, 5 June). It is something we’ve long been concerned about and tracked for a number of years, examining how it has persistently shaped women’s retirement prospects for the worse. The vast inequality between private pension pots for men and women is alarming. The findings of the latest Department for Work and Pensions gender pension report show the need...

June 12, 2023
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07Jun

U.K. pension funds slow to invest in biodiversity – report

U.K. pension funds are increasingly aware of biodiversity risks to their portfolios, but not many are investing in natural solutions, according to research from Pensions for Purpose released Monday. Commissioned by alternatives asset manager Gresham House, Pensions for Purpose asked 22 asset owners and investment consultants how much they incorporate biodiversity and natural capital in investment decisions. Participants included the £25 billion ($31 billion) National Employment Savings Trust, London, £35 billion Brunel Pension Partnership, Bristol, £15 billion London CIV, £35...

June 7, 2023
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06Jun

Why saving for a pension has become more risky

How much money are you going to have to live on in retirement? Perhaps, just like one in five Britons, you do not know. This is not a surprise since there are so many shifting factors, or risks, to consider when thinking about retirement finances. You need to think about how much you’ll earn during your life, to what your employer will decide to contribute towards your a pension, and how much tax you will have to pay. And then, even...

June 6, 2023
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05Jun

How the FCA’s new Consumer Duty impacts UK pension scheme buy-outs

Pension scheme trustees considering a buy-out are likely to welcome this, because the Duty will require the insurer to use its influence to deliver good outcomes for the members in relation to the policies. This will further strengthen the regulatory regime that applies to insurers and the protection it offers to bought out members. How the Consumer Duty will apply to pension schemes In July 2022, the FCA published its rules for a new Consumer Duty that will apply to FCA-regulated...

June 5, 2023
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