August 2024
06Aug

UK. Retirees seeking guaranteed income from pensions warned annuity rates set to fall

Now might be a good time buy an annuity for those savers looking for the safety of some guaranteed income in retirement – as annuity rates look set to fall. After the Bank of England cut the benchmark interest rate on 1 August, bets have snowballed that global central banks will have to slash rates as jobs market and recession fears in the US have suddenly mounted. Henrietta Grimston, Financial Planning Director at wealth management firm Evelyn Partners,observes: ‘That is sending...

August 6, 2024
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02Aug

UK. DWP data shows reduction in pension saver opt outs

The number of those opting out of workplace pensions has reduced in the last year, while the amount saved has not increased, data from the Department for Work and Pensions (DWP) has shown. The latest update for workplace pensions from the DWP showed eligible employee participation in workplace pension schemes has reached 88% - significantly higher than in 2012, when this was measured at 55%. The data also showed workplace pension participation remained broadly the same as that from 2019 to 2022. In...

August 2, 2024
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01Aug

UK. Savers warned of pensions impact on deforestation in Jane Goodall ad campaign

Jane Goodall and Genesis frontman Peter Gabriel have joined forces for a new ad campaign that warns UK savers of their pension investments’ hidden impact on global forests. The “Saving Jane” advert released on Wednesday shows an animated version of the zoologist saving up money in a pension pot to visit a tropical rainforest in Sumatra, Indonesia, only to discover the money was invested in companies destroying the natural world she wanted to protect. The film, which features a re-recording of...

August 1, 2024
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July 2024
31Jul

Pension funds target index providers as UK relaxes listing rules

A group of UK pension schemes are engaging index providers on their inclusion rules following recent listing changes in the UK.  This month, the Financial Conduct Authority (FCA) confirmed reforms to the UK’s listing regime in a bid to encourage more companies to list.   The new rules will merge the premium and standard segments on the London Stock Exchange into a new single segment, meaning firms choosing to IPO in the UK will have more flexibility to adopt dual-class share structures. Leading up and in...

July 31, 2024
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30Jul

New superfund guidance reshapes UK pension management

The UK’s Pensions Regulator (TPR) has unveiled updated guidance for superfunds, introducing pivotal changes that accountants and financial planners must heed. The guidance, released on Friday, marks a significant shift in TPR’s approach to capital release and scheme management, potentially unleashing a wave of innovation in the pensions market. At the heart of the update is a change to capital release rules. Previously restricted to benefit buyout scenarios, superfunds can now release capital up to twice yearly, subject to meeting specific triggers and...

July 30, 2024
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29Jul

UK. Lifetime annuity rates rise to over 7% in June

Lifetime annuity rates have continued to improve in 2024, rising to 7.08 per cent in June for a healthy 65 year old, according to the Standard Life Annuity Rate Tracker. This is around a 4 per cent increase from the average rate of 6.81 per cent in January and a 2.64 per cent improvement from 6.9 per cent in March. This would add an extra £3,659 to the average total lifetime income for a 65 year old man and £4,059 to...

July 29, 2024
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25Jul

UK. ‘Astonishing’ surge in pensioners paying top tax rate

The number of pensioners paying the highest rate of tax has doubled in just a year following a cut in thresholds. More than 100,000 taxpayers over the age of 65 will pay 45p in the pound on their income in the 2023-2024 tax year, projected HM Revenue & Customs (HMRC) figures have revealed. This is up from just 55,000 the year before, according to the data released to The Telegraph under a Freedom of Information request. The number of pension-age taxpayers hit...

July 25, 2024
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25Jul

UK. Pension confidence surges following General Election

Brits’ confidence in their retirement prospects continues to rise, according to PensionBee’s latest Pension Confidence Index. The Pension Confidence Indicator score surged to +30 immediately following the General Election, up from +22 in March 2024. This was also significantly higher than -10 in December 2023 and -9 in September 2023. For those under 55, positive pension sentiment increased significantly, from 39% in March 2024 to 50% in July 2024. The top reasons for feeling positive were: ‘my employer contributions are relatively good’ (45%);...

July 25, 2024
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24Jul

UK. Royal Mail to launch UK’s first CDC plan in October

Royal Mail Group has confirmed that the Royal Mail Collective Pension Plan will launch as the UK’s first collective defined contribution plan on October 7, 2024. The new CDC passed the Regulator’s assessment process in 2023 and every employee with at least a year’s service will be eligible to join. Employees will contribute 6 per cent of their pensionable pay each month into the collective pot, while Royal Mail will contribute 13.6 per cent. Benefits under the scheme include an...

July 24, 2024
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23Jul

UK government announces ‘landmark’ pensions review

The UK’s chancellor of the exchequer, Rachel Reeves, has announced a landmark pensions review as part of the new government’s mission to “boost growth and make every part of Britain better off”. Labour had promised to launch the pensions review as part of its manifesto prior to the UK’s general election and the industry has been awaiting this announcement since Labour’s landslide win earlier this month. Under plans unveiled by the new chancellor this weekend, billions of pounds of investment could be unlocked in...

July 23, 2024
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