January 2024
05Jan

Pension Risk Transfer Growth Fuels UK Insurance Rating

The growing popularity of pension risk transfer deals is behind an “improving” label for the U.K.’s life insurance sector, according to Fitch Ratings. Higher interest rates have led to an increase in the funded status of U.K. pension funds, which in turn has led to an increase in PRT transactions as companies seek to offload their pension liabilities. The increase in PRT transactions is primarily responsible for Fitch’s optimism about the sector in the U.K.; the ratings agency identified a “neutral”...

January 5, 2024
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04Jan

PLSA reveals ‘pensions’ role in UK growth’ as top strategic priority for 2024

The Pensions and Lifetime Savings Association (PLSA) has announced that its top strategic priority for 2024 will be the role that pension schemes can play in supporting the UK economy. Outlining its strategic objectives for the year, the PLSA revealed that it would further develop its recommendations aimed at promoting investment by ‘suitable’ pension schemes in assets that can help drive UK growth, which were published last year. The updated recommendations will aim to ensure the government is equipped to make...

January 4, 2024
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December 2023
21Dec

UK. Good News — The UK’s Pensions Black Hole Is No More

By John Stepek   Welcome to Money Distilled. I’m John Stepek. Every week day I look at the biggest stories in markets and economics, and explain what it all means for your money. The good news on UK corporate pensions Merryn talks to Kokou Agbo-Bloua, global head of economics, cross-asset and quant research about the outlook for 2024, and why he thinks a slowdown in the US is inevitable. But what should you buy? There was a story over on our Markets Live blog yesterday that caught my eye, as I’d missed...

December 21, 2023
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21Dec

UK. 2023’s pension proposals need political consensus

At a technical level, not an awful lot changed in the world of pensions in 2023, but a huge number of changes have been proposed – and some of those are seismic. Perhaps the most significant of those in the first half of the year was the announcement by chancellor Jeremy Hunt that the lifetime allowance would be scrapped, followed within minutes by the pledge from the opposition that it would be reinstated should they gain power. As it was, the charge was...

December 21, 2023
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20Dec

UK. DWP urges people buying State Pension top-ups to check uplift will be applied to payments first

New figures published by the UK Government show that at the end of March 2023, the number of people making voluntary National Insurance (NI) contributions to top-up their State Pension has surged by 85 per cent over the last year. The National Insurance Fund Accounts indicate that £391,973,000 worth of Class 3 NI contributions were made for the year ending March 31, compared to £212,311,000 paid in the previous year. However, the Department for Work and Pensions (DWP) is urging people thinking...

December 20, 2023
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19Dec

UK. Pensions are far from broken but could still use a fix

There aren’t too many areas of public policy where we in the UK can feel we have done a better job than in comparable countries. Our state pension system is, arguably, one of them. What we have is vaguely coherent and more affordable than most. It forms part of a system which, alongside widespread private provision and additional means-tested support for the poorest, results in many enjoying a relatively comfortable old age, and far fewer than in the past...

December 19, 2023
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18Dec

UK. Voluntary NI contributions surge 85% as people boost state pension

Voluntary contributions, also known as class 3 national insurance contributions, stood at £391.9mn for the year ending March 31, 2023. According to Hargreaves Lansdown, this is an 85 per cent surge on the £212.3mn paid the previous year. Class 3 contributions are voluntary contributions that can be used to fill gaps in national insurance records to boost state pension entitlement. Individuals can fill gaps going back six tax years though there is an opportunity for some people to fill gaps going back...

December 18, 2023
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13Dec

UK. Govt urged to adopt new policies to take advantage of increased longevity

A new government should introduce a range of new policies on retirement, health and social care, to release a potential “longevity dividend” worth half a trillion pounds, as well as deliver a range of social benefits, according to the International Longevity Centre (ILC). Policies outlined in its new white paper include an auto-enrolment (AE) savings scheme to run alongside AE pensions, auto-escalation of minimum AE contributions, and ideas to help self-employed and gig economy workers save for retirement. Other ideas floated...

December 13, 2023
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12Dec

U.K. Pensions Regulator updates cyber-risk guidance

U.K. pension trustees should be vigilant about cybersecurity and report significant events, The Pensions Regulator said in updated guidance released Dec. 11. "Pension schemes are at risk of being targeted by cyber-attacks because of the large amounts of personal data and assets they hold," TPR said in a release, saying the guidance will help trustees and plan managers as well as suppliers and advisers. The latest guidance calls on trustees and providers to report significant cyber incidents to help it build a better...

December 12, 2023
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12Dec

UK. Over two thirds of savers unsure how to switch to a greener pension

While most Brits are well aware of how to reduce their carbon footprint through changing their behaviours, more than two thirds (67 per cent) don’t know how to switch to a ‘green pension’, research from Scottish Widows has revealed. Scottish Widows’ second annual Green Pensions Report found that there is growing appetite for responsible retirement savings propositions among employers and employees, with nearly three quarters (74 per cent) of savers expressing a keen interest in obtaining more information about sustainable options for...

December 12, 2023
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