May 2024
17May

The Incidence of Workplace Pensions: Evidence from the Uk’s Automatic Enrollment Mandate

By Rachel Scarfe, Daniel Schaefer & Tomasz Sulka We examine who bears the costs of mandated workplace pension programs, exploiting the quasi-experimental rollout of automatic enrollment in the UK. Total compensation (take-home pay plus employer contributions) increases, driven by employer contributions, while the amount of take-home pay decreases. These effects differ by employer size, with take-home pay declining to an extent in the largest firms that we can rule out a pass-through to employees of more than 47%, significantly less...

May 17, 2024
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17May

US. Calpers moots $25bn green private market investment

US public pension Calpers plans to invest more than $25bn (£19.8bn) into climate-related private market investments. Calpers is the biggest public pension in the US and the proposed investment would be one of the largest commitments by a major fund to unlisted climate assets. The pension fund is reported to be considering deploying capital in the private equity, real estate and infrastructure markets, with a particular interest in Asia and Europe. “Those are the ones [private market assets] that have very evident...

May 17, 2024
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17May

UK. Shifting longevity one of biggest risks to pension schemes

In England, 544,054 deaths were registered in 2023, which was 3,721 (0.7%) more deaths than 2022 and 25,895 (4.8%) above the five-year average; in Wales, 36,054 deaths were registered, which was 360 (1.0%) more deaths than 2022 and 1,521 (4.2%) above the five-year average. There were more male deaths registered (295,416 deaths) than female (285,947 deaths) in 2023, continuing the trend seen in 2021 and 2022. Deaths were above the five-year average in every English region in 2023; the region with...

May 17, 2024
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16May

U.K. needs more favorable policies to retain leading status in sustainable finance — UKSIF report

After years of being a trailblazer in sustainable finance, the U.K.’s position is under threat amid stalled policy and a lack of certainty over regulation. Research by the U.K. Sustainable Investment and Finance Association, known as UKSIF, showed that more favorable policies could see up to £100 billion ($125.5 billion) in assets shifting into U.K. sustainable finance. The U.K. remains the top market for sustainable finance activity among 83% of those surveyed — but a clear direction of travel away...

May 16, 2024
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15May

UK. Pension Protection Fund 7800 index shows April increase for surplus, funding ratio

The total surplus of U.K. corporate pension funds covered by the Pension Protection Fund 7800 index increased 0.6% to £458.3 billion ($570.5 billion) at the end of April, coupled with an increase in funding ratio. The funding ratio was 148.8% at the end of April, compared to 146.5% at the end of March this year. Of the 5,050 plans in the PPF 7800 Index, there were 505 plans in deficit and 4,545 in surplus. Shalin Bhagwan, chief actuary at the Pension...

May 15, 2024
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13May

Rise in ultra-long mortgages ‘poses risk to UK retirement prospects’

Homebuyers are increasingly being forced to “gamble” with their retirement prospects to get on the housing ladder by taking on ultra-long mortgages lasting beyond the end of their working life, it has been claimed. More than a million mortgages that stretch beyond the borrower’s state pension age have been arranged in the last three years, figures show. The data, obtained via a freedom of information (FoI) request by the former Lib Dem pensions minister Steve Webb, show the proportion of home...

May 13, 2024
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10May

UK government’s Pensions Dashboards Programme delayed

The UK government’s high-profile Pensions Dashboards Programme (PDP) is behind schedule due to ineffective governance and a lack of people with the right skills and experience, a National Audit Office (NAO) report has revealed. This has contributed to pushing the date for the new platform to be connected to providers to October 31, 2026, a year later than planned. Costs have also risen from £235 million ($295 million) in 2020 to £289 million in 2023, an increase of 23%. The Pensions Dashboards Programme (PDP)...

May 10, 2024
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09May

Two in five current UK retirees have ‘retirement regrets’

Two in five (40 per cent) current UK retirees would have done something differently in how they approached their retirement, research from Canada Life has found. The research revealed that almost one in five (17 per cent) retirees would have increased pension savings while working, whilst just over one in 10 (12 per cent) would have made lifestyle adjustments while working to save more for their retirement. Furthermore, the firm found that nearly one in 10 (8 per cent) current retirees...

May 9, 2024
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08May

UK. The 2024 Pension Tax Changes: Five Things To Know And Three Things To Do

We have had a new pension tax regime since April 6, 2024. The underlying legislation is convoluted and almost impossible for a lay person to follow, so you would be forgiven for thinking there was a lot to study. At the very granular level that is true, and your scheme administrators will have a lot of detailed changes to make to systems. However if you zoom out a bit, in many ways life hasn't changed. We've done the poring over...

May 8, 2024
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07May

UK. DB and DC Participant Access Update

Private industry workers have a roughly 67% chance of having access to a defined contribution retirement plan and a 15% chance of being offered a defined benefit option, according to the most recent estimates from the U.S. Bureau of Labor Statistics. Of those workers with DB access, 11% are taking advantage of the benefit, according to the government department. In the DC space, 49% of workers are reportedly saving into the plans. The data, which was released April 19, is drawn from...

May 7, 2024
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