Press Releases

Commenting on the expected Bank of England interest rate rise, Chris Arcari, Head of Capital Markets, Hymans Robertson, said:

“Despite Bank of England Governor Andrew Bailey’s recent comments that further interest rate rises may not be required, markets fully expect the Bank of England to raise the bank rate from 5.25% p.a. to 5.5% p.a. at the September Monetary Policy Committee meeting and are split on whether interest rates are raised again, to a peak of 5.75% p.a., in this rate-hike cycle in early 2024 (i.e. are expecting one further 0.25% p.a. increase after the September meeting)...

Commenting on reports that the Government may be considering tweaking the state pension triple lock, Paul Waters, Partner, Hymans Robertson, said:

“Now is not the time to tweak the triple lock. Pensioners, particularly those on low incomes, will need the increased income that the triple lock will provide right now, especially to deal with the high cost of living increases. The state pension is already relatively low when measured against recommended UK minimum living standards and many European countries...

As the industry awaits TPR’s final DB funding code, Hymans Robertson has launched eight case studies looking at what these reforms could mean for UK DB pension schemes and their sponsors. TPR and DWP are still to resolve inconsistencies between the code and the regulations that will underpin it, and the industry awaits detailed guidance in several areas, such as the calculation of maturity and the format of the statement of strategy.

Commenting on the DWP’s call for evidence on Options for Defined Benefit schemes, Patrick Bloomfield, Partner and Senior Actuary, Hymans Robertson, said:

“The focus on boosting DB investment in UK productive finance assets has a sense of putting the cart before the horse. What we need are policies that create a DB renaissance, to align DB schemes with wider social interests, by extending time horizons and increasing risk appetites. This would lead to the investment in productive assets and higher savings rates that the Government desires...

Commenting on the DWP consultation on Helping savers understand their pension choices, Kathryn Fleming, Partner, Hymans Robertson, said:

“We wholeheartedly agree with the consultation’s proposals to offer support for those who find the decisions they need to make at the point of access daunting and to help trustees provide less engaged members with default options...

Hymans Robertson is pleased to have been listed as a signatory to the Financial Reporting Council’s (FRC) UK Stewardship Code for a third year. Acceptance onto the list again highlights its focus on being a sustainable partnership as well as its ongoing commitment to encouraging and challenging its clients to be better stewards.

Commenting on The Pensions Regulator (TPR) annual funding statistics for DB and hybrid schemes, released today, Laura McLaren, Partner & Head of DB Actuarial Consulting, said:

“The Pensions Regulator’s annual funding statistics, covering the latest tranche of submissions in the period to 23 June 2023 for valuations between September 2020 to September 2021, makes for interesting reading against the background of a changing DB funding regime.

The statistics show 38.7% of all DB pension schemes in surplus, compared with just 27% the year before. For schemes in deficit, recovery plans are continuing to shorten – the average plan is around five years.

The combined reserves of the largest 40 charities in England & Wales that sponsor DB pensions schemes rose to £49bn in 2022 from £40bn in 2021, according to analysis by Hymans Roberson. Its report: Defined Benefit pension funding in the charitable sector shows that at the same time, there’s been a 7% rise in average funding level of the DB schemes themselves, driven by positive return on pension scheme assets. While the sector continues to face challenges from rising inflation and a cost-of-living crisis, Charities need to consider how best to fund their pension schemes and take opportunities to reduce risks as they arise.

Commenting on The Pensions Regulator (TPR)’s update to its guidance on superfunds, Iain Pearce, Head of Alternative Risk Transfer, Hymans Robertson, said:

“We welcome the latest update to the TPR guidance on superfunds. As the TPR states, whilst this market has a lot of potential to make a real difference to member outcomes as another route to continuing to provide benefits in full, it has yet to fully take off. The latest guidance follows the recent Government response to consultations on superfunds with a strong sense of alignment between those two updates...

Up to £200bn of DC assets could be committed to private debt investments by the end of the decade, according to the latest analysis from Hymans Robertson, as it warns a shift in mindset is required to meet this goal. Its Illiquid Investment: Embracing the Opportunities paper published today, proposes that private debt has a role to play in all stages of a DC glidepath.

Commenting on today’s interest rate rise from the Bank of England, William Marshall, Chief Investment Officer – Hymans Robertson Investment Services (HRIS) says:

“The Bank of England’s (BoE) action today, shows the Monetary Policy Committee (MPC) has been cautiously encouraged by recent data, allowing them to increase interest rates by just 0.25%. Until a couple of weeks ago, when inflation data for June was released showing a greater-than-expected drop, it seemed the BoE was heading for another 0.5% increase. Notably, underlying inflation indicators for services and core inflation (which excludes volatile items like food and energy) also fell more than anticipated. This was enough to convince the MPC that a lower hike would be sufficient...

Hymans Robertson, the leading pensions and financial services consultancy, is proud to announce that it has achieved B Corp certification and joined the B Corp Movement. Widely recognised as a ‘gold standard’ for social and environmental performance, B Corp certification is verified by B Lab, a global non-profit network with a mission to inspire and enable people to use business as a force for good. Prospective B Corps are assessed across five key areas: Governance, Workers, Community, Environment and Customers. To gain the highly sought after accolade, Hymans Robertson was required to demonstrate high standards across all areas in a rigorous verification process.