Club Vita and the PLSA have published a joint report which shows that life expectancy amongst affluent men in the UK is rising faster than any other group, and faster than the national trends seen over the last five years. The report suggests this trend could have significant implications for Defined Benefit pension schemes as typically over half of their liabilities will be in this ‘comfortable’ group.
“This consultation is as welcome as it is long overdue. George Osborne threw a curveball at the entire pension industry when he introduced freedom and choice back in March 2014."
Calum Cooper comments on the news that the Defined Benefit (DB) scheme of an unnamed financial services group has seen its liabilities cut by a tenth in 6 months due to members cashing in their benefits.
Chris Noon, Partner comments on what we’d like the new Pensions Secretary and Pension Minister to think about as they take up their posts.
The only thing we can be certain of is more uncertainty. Uncertainty over Brexit and uncertainty over the future policies of the next UK Government.
Nearly 9 out of 10 (88%) trustees and employers of DB Schemes believe they should be doing more to communicate with members over their retirement choices post Freedom and Choice, according to a poll conducted by Hymans Robertson.
The College of Law Pension & Assurance Scheme has completed a fourth pensioner buy-in, of £28m, with Aviva.
We comment on the political parties' pension manifestos ahead of the General Election
In response to the DWP's Green paper we believe risk is the main issue facing UK DB schemes, and must be the key focus. Excellence in risk management, and using the funding flexibilities available, should be schemes’ main priority, putting a spotlight on improving benefit security.
As members receive their SMPIs for 2017/18, schemes have a duty to provide context, reassurance and guidance through their communications. Otherwise there is a risk that members will have knee-jerk reactions and be put off saving.
What should be in the political parties’ pension manifestos?
State Pensioners get £2.04 per week more from the implementation of triple lock, than from the double lock, and £7.02 more than if the pension was based solely on price inflation according to our research. While these extra pounds mean a lot to the recipients, such figures would be insignificant to government costs weighed up against the political impact of removing the triple lock.
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