February 2024
06Feb

U.S. Public Pensions Highly Vulnerable to Market Correction

Investment volatility has re-emerged as a key concern for defined benefit public pension plans since the pandemic began, signalling the risk that market corrections can set back progress in stabilizing funded ratios and trigger higher contributions, Fitch Ratings says. Asset values surged in 2021 followed by sharp reversal in 2022 and a rebound in 2023. Based on audits of almost 100 major state pension plans, fiduciary plan assets rose a median of 24.4% in fiscal 2021, then fell 7% yoy...

February 6, 2024
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06Feb

UK’s ageing population prompts calls to push state pension age up to 71

The UK’s ageing population means that the state pension age would need to rise from the current 66 to 70 or 71 to maintain the status quo, research from the International Longevity Centre (ILC) has revealed. The ILC pointed out that most of those countries ranking at the top of its Healthy Ageing and Prevention Index have rapidly ageing populations, which are making it increasingly important for these governments to act to support healthy ageing. In particular, the ILC’s analysis showed,...

February 6, 2024
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02Feb

The Purpose of Pensions

By Tom Shields & Jesse Griffiths  The pensions the system needs major reform: it is not delivering decent, secure retirement incomes for all, it excludes far too many, and it is not playing a big enough role in delivering a just, green transition, or supporting an inclusive, sustainable and productive economy. This paper reviews all proposals for change, and recommends five key sets of reforms that could ensure that the pensions system works for people, the economy, and the environment. Get...

February 2, 2024
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02Feb

UK. One in four have stopped paying into their pensions

Almost two in five pension investors have stopped contributions or cut back on payments in the past five years, new research from wealth manager Investec Wealth & Investment has revealed. The nationwide study found a quarter have stopped paying into their pensions altogether, while another 12% have dramatically or slightly reduced monthly contributions. One of the primary reasons given was the cost-of-living crisis, followed by moving jobs or receiving a pay cut. Investec estimates the average amount of lost contributions adds up...

February 2, 2024
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01Feb

Analysis: 2024 to be the biggest year for UK pension de-risking

UK pensions consultants expect 2024 to be another record-breaking year for the pensions risk transfer market with transactions surpassing 2023 levels. The final figures for 2023 are yet to be published. However, it is widely expected that there were circa £50bn in deals, which would brand 2023 as a record year for pension risk transfers, compared with the previous high of £43.8bn in 2019. UK pensions consultants expect this trend to continue. WTW expects pension risk transfer volumes to reach £80bn, with...

February 1, 2024
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January 2024
31Jan

U.K. looks to reprioritize investment flexibility in pension fund legislation

The U.K. government is amending proposed legislation to ensure defined benefit plans do not become overly risk averse, following a consultation review that was published online. DB plans in the U.K. will be able to take more investment risk when supported by sponsoring employers, according to the government's final position on the long-running development of new legislation for pension plans. "It was never (the U.K. government's) intention to bear down on risk-taking across the board. Rather, it was to make funding...

January 31, 2024
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30Jan

UK. DWP confirms final DB funding regulations

The Department for Work and Pensions (DWP) has published the final Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, which are set to come into force from April 2024. The final regulations set out the requirements for defined benefit (DB) pension schemes when determining their funding and investment strategy and statement of strategy, and will apply to scheme valuations from September 2024. Industry experts previously raised concerns over a potential mismatch between the DB regulations and The Pensions...

January 30, 2024
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29Jan

UK. Privately educated adults ‘more likely to have learned about pensions at school’

People who attended a private school are more likely to say they learned about pensions at school (20%) than those who were state-educated (6%), a survey has indicated. More than two-fifths (42%) of privately educated 35 to 44-year-olds said they reviewed or reassessed their pension pot at least once a year, compared with less than a fifth (17%) of state school-educated peers of the same age. Privately educated people were also more likely to hold private pensions outside of employment-linked pensions (40%),...

January 29, 2024
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25Jan

Savers at risk from UK’s pension ‘pot for life’ plan, industry leaders warn

Critics say government proposal for single, career-long retirement funds could leave individuals worse off A proposed shake-up of the UK’s pension market to give millions of workers the right to choose a retirement “pot for life” risks leaving savers worse off, industry leaders and unions have warned. In last year’s Autumn Statement economic plan, the government issued a call for evidence on a “lifetime provider” model, which would allow consumers to stick with one pension pot throughout their career. Currently employers are...

January 25, 2024
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24Jan

UK pension funds turn to renewable energy investment

UK pension funds and insurers are keen to increase allocations to renewable energy in the coming years, according to new research. A survey by AlphaReal, a specialist real assets manager, found that a majority of pension funds and insurers planned to increase their allocation to renewable energy in the next year. The survey, which included institutions with a combined £360bn in assets under management, found that 90% of respondents planned to increase their allocation to renewables, with the remaining 10% open...

January 24, 2024
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