January 2023
05Jan

UK. A surge in pension risk settlement predicted in 2023

Aon is predicting a surge in UK pension risk settlement in 2023, as the events of 2022 continue to feed through to the market. Martin Bird, senior partner and head of UK Risk Settlement at Aon, said: “While 2022 was one of the busiest years we have seen in the risk settlement market, we have every expectation that 2023 will see it accelerate. We think there will be a focus on full scheme transactions driving significant volumes across the entire...

January 5, 2023
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04Jan

UK. Solving the Liquidity Factor for Alternative Investments in DC Plans

One of the main reasons that plan sponsors have been hesitant to bring alternative assets into defined contribution plans is concerns about the liquidity of such assets. Private real estate, for example, which has become the most common alternative investment within defined contribution plans, is at its core an illiquid asset. Part of the reason that it’s a less volatile investment than traditional securities is that it’s typically only valued once per quarter, making it even harder for asset managers...

January 4, 2023
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03Jan

UK. Industry criticises 2022 as an adverse year for pensions

Results from our last Pensions Buzz survey of 2022 revealed 54% of respondents felt the last 12 months have not been positive for the industry, against 36% who disagreed and 14% who voted don't know. Of the respondents who said 2022 had not been a positive year, several pointed to the liability-driven investment (LDI) crisis as a result of September's Mini Budget. One respondent said: "The LDI crisis was very damaging. Stock market has been volatile, pension valises have fallen and...

January 3, 2023
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02Jan

UK. Work and pensions minister quits for ‘personal reasons’

Work and pensions minister Baroness Stedman-Scott has stepped down for “personal reasons”, Downing Street has said. Lady Stedman-Scott, 67, has been a minister in the department since 2019, having previously been a Government whip in the House of Lords. She is replaced by Viscount Younger of Leckie, who moves from the whips’ office where he is in turn replaced by Lord Evans of Rainow. Read more @cityam 367 views

January 2, 2023
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December 2022
30Dec

U.K. Altmann hits out at providers for pension positivity failure

Providers have failed to engage or enthuse millions of auto-enrolment customers with positive pension messages, undermining the policy by not explaining the advantages of pensions, Baroness Ros Altmann says. The campaigner and former pensions minister said that, rather than "constant negative messaging", people needed to know about the positives of pensions so they understand the free money they will have and higher benefit payments they could have if they keep paying in. Altmann's comments come as research by The Pensions Management Institute...

December 30, 2022
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29Dec

U.K. Investors must innovate to stay ahead of FCA’s SDR proposal

The FCA’s new sustainability disclosure requirements may prove to be a defining moment for financial services, the chief project officer at the Global Returns Project has said. Jack Chellman told FTAdviser the FCA’s rules, which are currently being consulted on, cannot come soon enough. “Investors are increasingly concerned about greenwashing,” he said. “Looking ahead to 2023, asset managers must embrace innovative approaches to demonstrate their sustainability credentials if they are to satisfy their clients and rise to the challenge of constructing attractive, competitive...

December 29, 2022
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28Dec

A long-term illness crisis is threatening the UK economy

Along with sky-high inflation and energy costs, a Brexit-related trade tailspin and a recession in progress, the U.K. economy is being hammered by record numbers of workers reporting long-term sickness. The Office for National Statistics reported that between June and August 2022, around 2.5 million people cited long-term sickness as the main reason for economic inactivity, an increase of around half a million since 2019. The number of “economically inactive” people — those neither working nor looking for a job —...

December 28, 2022
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27Dec

Inflation, war, rising interest rates posed steep challenges for investors in 2022

An inflationary environment that is anything but transitory, the volatility arising from Russia's invasion of Ukraine and other geopolitical crises, and a bevy of controversies surrounding ESG investing dominated headlines this year, while the fall of Allianz Global Investors and an exceptionally busy regulatory year were also among Pensions & Investments' top 10 stories of 2022. The top story this year was inflation and the Federal Reserve's aggressive actions to curb it through multiple interest rate hikes. After more than...

December 27, 2022
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26Dec

DWP confirms 2023 State Pension 10.1% rise with some eligible for more than £815 a month

State Pension pay rates are set to increase in the new year. Chancellor Jeremy Hunt's Autumn Statement protected the Triple Lock Rule once again. Anyone who receives Basic and New State Pension payments should expect to see their monthly income increase from April 2023. For the 12.5 million older people across the UK claiming the pension amount, this means an increase of 10.1% from spring next year, North Wales Live reports.. There are 10.1 million people currently receiving Basic State Pension...

December 26, 2022
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22Dec

New FCA nudges for better long-term outcomes in non-workplace pensions

The UK’s Financial Conduct Authority (FCA) has published new rules for providers of non-workplace pensions. The intervention was prompted by FCA findings that suggested that, like in defined contribution workplace pensions, the non-workplace pension sector suffered from low consumer engagement combined with complex and confusing products and charges. The regulator said the issue had caused a lack of competitive pressure to drive better value for consumers. It also found that non‑advised customers often may end up investing in products that...

December 22, 2022
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