The UK’s state-backed pension scheme has led calls for understanding member behaviour in light of the incoming pension flexibilities, arguing such work is more important than developing new products for savers.
DC: The New Investment Journey. It may be a caravan rather than a Lamborghini, but scheme managers across the country are getting ready for a wave of savers cashing in their pension pots come April’s introduction of George Osborne’s retirement flexibilities.
DC: The New Investment Journey. Health and beauty group Alliance Boots is launching a new website to get messages on pension changes out to staff at its eight UK employers, and is planning to ditch paper-based booklets to offset the costs.
DC: The New Investment Journey. Nest is planning to amend its target date funds that currently aim for annuity purchase in light of the greater flexibility in retirement options available to scheme members from April 2015.
The £2.9bn Surrey County Council Pension Fund has set a framework to buy leveraged gilts upon hitting inflation and interest rate triggers, as part of a wider move into liability-driven investment.
Schemes are increasingly turning to segmentation as they explore strategies for communication and investment across different sections of their membership, but legal experts warned of the importance of treating members fairly.
Comment & Analysis
JP Morgan's Patrik Schöwitz looks at the value in global equity markets, and argues that a "golden period" for the asset class is not on the verge of becoming tarnished, in the latest edition of Informed Comment.
Talking head: The NAPF's Helen Forrest talks about how the organisation's better-funded members are dealing with the prospect of scheme surpluses.
The level of calm within a given pensions department ahead of the advent of the new pension freedoms is probably related to how well you know your scheme membership.
Video: Jonathan Lipkin, director of public policy at the Investment Management Association, says that it is not up to investment managers to take the overall responsibility for ensuring charges are below the 0.75 per cent cap effective from April (5:48).
Video: Independent pensions expert and the government's older workers champion Ros Altmann discusses the Budget changes and the chancellor's further pensions tax announcements (4:18).
Video: The Pension Protection Fund's John St Hill, M&G's William Nicoll and Hymans Robertson's Carl Hitchman discuss fixed income challenges, and how schemes can prepare for the end of the low-rate era (6:00).
The DC Debate
- Rapidly shrinking yields leave investors needing more complex mandates
- Nest to switch TDF goalposts from annuity purchase as April looms
- Managers predict cash will be king for many post-April retirees
- Unilever swaps asset allocation approach to focus on outcomes
- Is Labour right to argue for extending auto-enrolment to 1.5m lower earners?