November 2024
12Nov

US. Why do workers yearn for defined-benefit pension plans?

A closer look at the Boeing negotiations only makes the question more puzzling Boeing Co. unionized workers recently voted to accept the aerospace company's third contract offer and end their strike. The agreement does not include reopening the Boeing (BA) defined-benefit pension plan, which was cited as the major reason that the union rejected the second offer. Even though the strike is over, I find the fact that reopening the pension plan played such a prominent role in the negotiations really...

November 12, 2024
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11Nov

Gen X slip between DB and DC pension cracks

The tail-off in defined benefit (DB) pension provision around the millennium and a lack of compulsion around defined contribution (DC) saving until 2012 has had a lasting impact according to Standard Life’s Retirement Voice report. • Majority of Gen X (54%) are worried their finances won’t cover their retirement – compared to 31% among Baby Boomers • 45% Gen X expect their living standard to be worse in retirement compared to 29% of Millennials • Gen X most likely...

November 11, 2024
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07Nov

US. Employers offering better retirement plan benefits — Willis Towers Watson

Employers are becoming more generous with their retirement plan benefits, according to Willis Towers Watson’s 2024 U.S. Defined Contribution Survey. While the median employer contribution to defined contribution plans remained at 7.1% of pay, the gap in overall retirement benefits offered by the most and least generous employers narrowed significantly between 2000 and 2020, the survey found. In 2020, the most generous employers — those in the 90th percentile — provided retirement benefits that were 10.9% of pay, whereas the least...

November 7, 2024
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October 2024
30Oct

‘Companies are not listening to us’: DC schemes’ net zero challenges

Progress towards achieving net zero carbon emissions by 2050 is being hampered by some companies failing to engage with pension schemes or backtracking on previous commitments, according to research. A new report from the Defined Contribution Investment Forum (DCIF) has highlighted stewardship and engagement issues being faced by some of the country’s largest defined contribution (DC) master trusts. Katharina Lindmeier, senior responsible investment manager at Nest, told the DCIF that much of the “low hanging fruit has been plucked” as schemes...

October 30, 2024
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25Oct

2024 Defined Contribution Pension and Savings Report

By Stuart Arnold & Claire Murray This year’s survey reveals the immediate focus and priorities that employers, plan sponsors and pension trustees have for their defined contribution (DC) retirement plans. In this edition, in response to the growing concern surrounding retirement adequacy, we look at the views and actions of employers concerning the outcomes that employees can expect from their retirement provision. What are the main priorities for employers in retirement provision, what steps are sponsors taking, and what opportunities should...

October 25, 2024
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September 2024
10Sep

Study Suggests Reforming U.S. Retirement System with Modern Framework

After studying international retirement systems, researchers from the TIAA Institute are proposing a new U.S. model featuring a “hybrid” system consisting of the best elements from defined contribution (DC) and defined benefit (DB) plans. In noting that the average retiree can now expect to spend about two decades in retirement, roughly double the time from 50 years ago, the study (The Future of Retirement Security) looks at how seven countries have adapted their retirement systems to account for these extended...

September 10, 2024
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August 2024
28Aug

UK. DC retirement expectations improve following state pension increase

The expected future living standard in retirement provided by defined contribution (DC) savings improved in Q2, although it is yet to return to the level reached before the 2023 update to the Retirement Living Standards, Aon's UK DC pension tracker has revealed. Aon's DC tracker rose “steeply” from 60 to 65.2 during the quarter, driven primarily by the April 2024 increase in the state pension, together with increases in post-retirement expected investment returns. According to the tracker, all members benefited from...

August 28, 2024
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19Aug

UK. Pension review to start with consolidation of DC market

The first phase of the government’s pensions review will include driving scale and consolidation of defined contribution workplace schemes. Announced on Friday (August 16), the initial phase also aims to tackle fragmentation and inefficiency in the local government pension scheme through consolidation and governance. Experts have urged the government to keep the interests of savers at the forefront. In addition, it will look at the structure of the pensions ecosystem and achieving a greater focus on value to deliver better outcomes for...

August 19, 2024
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July 2024
05Jul

2023 Defined Contribution Pension and Savings Report

By Gemma Burrows The 2023 survey contains data on 122 of the FTSE 350 companies and 140 other leading UK employers, which makes this one of the largest UK DC Pension and Savings Surveys in the industry. As always, we would like to thank those who took part in this survey and helped us to conduct this research and bring these valuable insights. Get the report here ___ Since our last survey, we have seen turmoil in investment markets, inflation rise into double-digit...

July 5, 2024
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02Jul

UK. DC pension schemes see rise in investments in assets with climate targets

The defined contribution (DC) pension scheme market has seen almost a quarter (23%) increase in schemes’ investment in assets with climate targets since 2021, according to research from Barnett Waddingham. The majority (86%) of DC pension schemes have set targets to reach net-zero by 2050, with 18% of these targeting 2040. Of the pension schemes that have set net-zero targets, 81% have committed to achieving interim targets, in many cases aiming to achieve a 50% emissions reduction by 2030. Barnett Waddingham said:...

July 2, 2024
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