PensionsEurope’s Post

2024 Manifestos – Labour’s pension policies - Increase investment in UK markets. - Review how much of the Mineworkers’ Pension Scheme surplus is returned to Treasury, and how much is returned to members. - Ensure pension funds develop have transition plans that align with the Paris Agreement. - Retain the triple lock. - Adopt reforms to workplace pensions to deliver better outcomes for savers and pensioners (comment, multi-employer CDC, AE increases?) Wordcount – 16 mentions (one of which is ‘suspensions’). https://lnkd.in/eNuiTVX9 #2024GeneralElection #AlwaysAPensionsAngle

The UK is at risk of sleepwalking into a national pension crisis, impacting pension holders and the planet ⚠️ Our new report with The Finance Innovation Lab and Make My Money Matter provides recommendations for policy makers that would see the Government grow the economy, tackle the climate crisis, and improve retirement security for millions through pension reform. It’s not just us who want this though. Through public polling, the report finds: 🙋 ¾ of the public believe the Government should be doing more to ensure UK pensions invest in activities that boost the UK economy 🙋 ⅔ of the public believe the Government should be doing more to ensure UK pensions invest in companies that tackle climate change We need to see more action that supports everyday savers in retirement – through the size of their pension pots but also the protection of the planet they retire into. Read the full report and recommendations ⬇️https://lnkd.in/dqrbNASe

🚀 Breaking News: Report Highlights UK Retirement Savings Challenge 🚀 A recent report sheds light on a pressing issue: only 40% of UK households are on track for a moderate standard of retirement living. 😱 While this revelation may raise concerns, it also underscores the urgency for proactive measures. Encouraging savings demands more than individual effort; it necessitates robust policy backing. 💼📈 Initiatives aimed at promoting financial literacy, incentivising pension contributions, and ensuring accessibility to retirement planning tools are essential steps toward fostering a secure future for all. As we confront this challenge head-on, let's advocate for policies that empower individuals to take control of their financial destinies. Together, we can pave the way for a brighter retirement landscape for generations to come. 💪💡 #RetirementSavings #FinancialLiteracy #PolicyMatters #SecureFuture

Great to work with partners at the The Finance Innovation Lab and Make My Money Matter to set out a strong case for reforming the pensions system, with robust recommendations for how the government can: 🌍 encourage climate-conscious investment decisions ⚖ address retirement inequality 💼 support a sustainable economy We're taking these proposals to policy makers to see which ones have the mettle to make the system fairer and future-proof, so it works better for us all.

Really interesting read about how we make policy decisions.

The gender pension gap for private pensions currently stands at 35% despite the gender pay gap falling to 7.7%, among full time workers, over the past decade. Our report, Tackling the gender pension and wealth gap, looks at the differences between men and women in saving for retirement, their long-term savings and general approach to the protection market.  https://lnkd.in/eb7dZmdj

Are infrastructure investments a good fit for UK pensions? ❓❗️ As part of the government’s policy to promote economic growth, the UK Department for Work and Pensions (DWP) wants to build an evidence base around how defined benefit (DB) pension schemes could increase the amount invested in productive asset classes including infrastructure. In its response to DWP, EDHEC Infra & Private Assets underlines the advantages of infrastructure for long-term investors, particularly pension funds, but draws the Department's attention to the risks of this category of assets, which it considers to be poorly captured by investors. We highlighted that with poor quality data, UK DB plans face the risk of mistreatment of pension rights.  Given the importance of this subject, which affects not only investors and managers but also the entire UK community, we kindly invite you to contribute by completing a short survey here: https://lnkd.in/eACumGtY #InfrastructureInvestment #EconomicGrowth #PensionFunds #RiskManagement  #infraMetrics #makeanimpact Read the full response here: https://lnkd.in/dVrXyBK

A new paper on SSRN, "How Hidden Costs Undermine Public Pensions in the US" by Richard Ennis discusses the disastrous effects alternate investments have had on public pension funds. Poor performance (no Alpha) and high expenses have kept pension returns lower than expected. "High cost is the Achilles heel of the public pension system in the US." "For every 10-percentage-point increase in the allocation to alts, there is a statistically significant 56-bps reduction in annualized alpha." Public pension managers are behind the eight-ball trying anything to catch-up to unfunded plans.

The case for higher workplace pension contributions is very strong: it would deliver better retirements and bigger pension funds able to invest more. The pensions sector supports it and international evidence does too. So why don’t politicians do it? My latest The Times column retells the story of Adair Turner’s Pensions Commission -born almost exactly 21 years ago - and argues that politics has changed over two decades, meaning any attempt at Turner 2.0 needs to grow out of public opinion. That means the pensions sector needs to adopt a campaigning mindset, talking more directly and emotively to the public. Start with job applicants. You’d never take a job without knowing the salary. So why accept a role without knowing the pension contributions? An “Ask About The Pension” campaign would harness people power to drive the case for higher pension contributions. Like all policy wonks I adored the Turner Commission approach - technocratic and consensual- but the world has moved on. The argument for higher pension contributions needs to change too. #pensions #autoenrolment #publicaffairs —— We need a new debate on pensions, this time involving the public https://lnkd.in/gvr3TydP

The Pensions (extension of automatic enrolement) Act (no. 2) brings in new contribution levels for all workers and employers, together with a lowering of the minimum age for auto enrolment from 22 to 18. This change should result in higher pension at retirement, as well as increased costs for employees and employers. The DWP predict an increase in pension income of 50% for the average earner. A welcome rise for many new workers.