August 2022
09Aug

UK. Property a ‘risky’ investment for retirement pots

High interest rates and low capital growth could reduce retirement property pot savings by as much as 38 per cent, research by wealth manager Netwealth has found. While property investment has been a favoured option for boosting cash in retirement, the research found investment in additional properties or buy-to-let was usually outperformed by pensions. Analysis of different values of property growth, compared with the average pension projected growth over 20 years, showed property investment could significant reducing retirement pot savings by...

August 9, 2022
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08Aug

UK. How to help the self-employed boost their pension savings

Just prior to the pandemic the self-employed made up about one in seven of the workforce, and while that is likely to have dipped somewhat through the pandemic, this remains much larger than a generation ago, driven by growth in self-employment in the decade after the financial crisis. Despite the growth in the number of people who are self-employed over the years, pension savings for this group have continued to fall. A recent report from the Office for National Statistics paints...

August 8, 2022
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05Aug

The Misery of Spending Down the Nest Egg: The Effect of Annuitization on Consumption and Wellbeing

By Yu Gao, George Loewenstein & Xianghong Wang We study the effects of annuitization compared to spending down a lump-sum on consumption and subjective wellbeing. Analyzing longitudinal data on UK retirees before and after the pension reform that provided greater freedom to draw down savings, we find that annuitization increased retirees’ consumption and life satisfaction. To further examine the behavioral channel of these effects, we conducted a field experiment with college students, giving them a flow or lump-sum payment. As...

August 5, 2022
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05Aug

UK. TPR revamps guidance on fiduciary management tender processes

The Pensions Regulator has published updated guidance on the tender process for fiduciary management services and trustees, setting objectives for investment consultants as it prepares to take over regulation of these duties this autumn. Since December 2019, trustees have been legally required to run a competitive tender process when appointing fiduciary managers for a fifth or more of scheme assets, and have had to set strategic objectives for their investment consultancy provider. From this October, TPR will take over compliance-reporting and...

August 5, 2022
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03Aug

UK. DWP adds new way for people of State Pension age to claim income boost of up to £3,300

The Department for Work and Pensions (DWP) recently confirmed that new claims for Pension Credit made between April 1 and July 3, took an average of 40 days to process. This means those over State Pension age who submit an application this week, could receive financial support by the end of September. To help even more people over 66 claim support worth around £3,300 on average each year, DWP has introduced a new interactive Pension Credit claim form which can...

August 3, 2022
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01Aug

Collective defined contribution schemes launch in Great Britain

Providers in Great Britain are now able to apply to launch collective defined contribution schemes, a development hailed by pensions minister Guy Opperman for its potential to “transform the UK pensions landscape”. Under CDC schemes, employers and employees pay a fixed rate of contributions, collected in a manner similar to defined contribution schemes. Benefits are paid with a target in mind, similar to defined benefit schemes, but with the prospect of variable increases — and the possibility of decreases. Read also...

August 1, 2022
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July 2022
29Jul

UK. 16 million workers at risk of not saving adequately for retirement

Around 85 per cent of workers, equal to 16 million people, are not saving at levels likely to deliver an acceptable standard of living in retirement, new research has found, prompting calls for the development of a 'Living Pension Standard'. A report from the Living Wage Foundation and the Resolution Foundation raised concerns over the current levels of saving, explaining that while auto enrolment (AE) improved rates of saving, meeting the Living Pension benchmark requires more than the AE minimum. The...

July 29, 2022
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28Jul

Gender Pay Gap Report 2021: Reporting our progress

By Legal and General In 2021, we have once again seen a continued, progressive narrowing of our pay gap, from 26.6% to 24.1%. This progress reflects the focus we have applied over the past year to creating a more diverse workforce and a more inclusive workplace where everyone can succeed. In this report, we share our latest gender pay gap data and update stakeholders on the steps we’re taking to narrow the gap further. Monitoring and reporting the gap over...

July 28, 2022
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28Jul

UK. Pensions gender gaps exist across several industries, research finds

Women’s pension savings at retirement are less than half the size of men’s, according to a financial services provider’s analysis of its workplace pensions data. Legal & General analysed more than 4.5 million defined contribution (DC) workplace pension savers. When looking at thousands of people who retired last year, it found that women had typically built a pot of £12,000 at retirement, while men had £26,000 put away. The findings did not take into account any savings which may be placed elsewhere,...

July 28, 2022
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27Jul

UK. Thousands of gig economy workers in line for improved labor conditions

While not a change in the law, business minister Jane Hunt said the guidance was “tidying up the rules” to help workers find out if they are being treated fairly by their workplace. It follows the landmark Uber Supreme Court judgment in February last year, which held that individuals in the gig economy qualify as workers. This entitles them to core employment protections including earning at least the National Minimum Wage as well as being given paid holiday leave and a...

July 27, 2022
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