Defined Contribution Archives - Pension Policy International

10JanJanuary 10, 2025

Pensions Investment Review: Unlocking the UK pensions market for growth

By Department for Work and Pensions & HM Treasury In July 2024 the Chancellor announced a landmark Pensions Review, the first phase of which was purposed with exploring new ways to boost investment, increasing saver returns and tackling waste in the pensions system. The joint HM Treasury-Department for Work and Pensions Minister Emma Reynolds MP was asked by the Chancellor to lead the first phase of the review, which is focussed on four specific areas. Get the report here

January 10, 2025

Books, Books, Reports2024, Defined Contribution, Investment, savings, UK

13DecDecember 13, 2024

Aon UK DC Pension Tracker – Q3 2024: State Pension increase drives rise in savers’ expected incomes

By Aon Over Q2 as a whole, the Aon UK DC Tracker rose which suggests the expected future living standard in retirement provided by defined contribution (DC) savings was higher than at the end of the previous quarter. All members benefited from the April 2024 increase in the state pension, which increased from £10,600 to £11,500 per year. The oldest saver saw the largest proportionate increase from this change as the state pension makes up a larger proportion of their expected retirement income. Positive returns...

December 13, 2024

Books, Books, Pension Management, Reports2024, Defined Contribution, Investment, Pension Management, UK

13DecDecember 13, 2024

UK. DC retirement expectations fall for young savers amid ‘flat’ investment returns

The expected future living standard in retirement provided by defined contribution (DC) savings fell for young savers in Q3, following "flat" investment returns, Aon’s UK DC pension tracker has revealed. The youngest saver’s expected income in retirement decreased by around £170 p.a. (0.5 per cent), driven by the increase in expected inflation and a decrease in the expected future investment return assumptions post-retirement. An increase in future expected return assumptions before retirement partially offset these decreases. However, older savers’ expected retirement...

December 13, 2024

News, SliderDefined Contribution, UK

25NovNovember 25, 2024

UK. Hopes and fears for pensions in 2025

Improvements in defined benefit (DB) pension scheme funding mean that, for many, the ‘endgame’ for the pension scheme now feels tangible, instead of a distant ambition. However, the advent of the new funding regime will overlay a new discipline. With defined contribution (DC) schemes, questions around adequacy remain uppermost for members, while the absence of a timetable for the extension of auto-enrolment minimum contributions continues to be a concern.” The challenge of retirement adequacy We now know that Employer National Insurance...

November 25, 2024

NewsDefined Benefit, Defined Contribution, UK

12NovNovember 12, 2024

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

NewsDefined Benefit, Defined Contribution, Retirement Planning, US

11NovNovember 11, 2024

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

NewsDefined Benefit, Defined Contribution, Gen X, Retirement Planning, savings, UK

07NovNovember 7, 2024

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

NewsDefined Contribution, savings, US

30OctOctober 30, 2024

‘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

NewsDefined Contribution, ESG, UK

25OctOctober 25, 2024

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

Books, Books, Reports, System Characterization2024, Defined Contribution, savings, UK

10SepSeptember 10, 2024

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

NewsDefined Benefit, Defined Contribution, System sustainability, US

January 2025

Pensions Investment Review: Unlocking the UK pensions market for growth

December 2024

Aon UK DC Pension Tracker – Q3 2024: State Pension increase drives rise in savers’ expected incomes

UK. DC retirement expectations fall for young savers amid ‘flat’ investment returns

November 2024

UK. Hopes and fears for pensions in 2025

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

Gen X slip between DB and DC pension cracks

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

October 2024

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

2024 Defined Contribution Pension and Savings Report

September 2024

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