Latest articles from Angus Peters

Savers prepared to look past charges for returns

Good returns are the primary concern for pension scheme members when assessing value for money, according to research conducted by 11 independent governance committees, with charges sitting outside the top 10 of saver concerns.

DWP blocks Nest drawdown in favour of industry innovation

The Department for Work and Pensions has decided against letting Nest offer drawdown after strong opposition emerged at consultation, opting instead to rely on industry innovation, but some have questioned whether the market will provide this.

Select committee hears evidence on how to get the self-employed saving

Proposals including an expansion of auto-enrolment and raising class 4 national insurance contributions, aimed at boosting pensions coverage in the UK, have been put before the Work and Pensions Committee as part of its inquiry into self-employed workers.

BHS deal welcomed but views split over DB framework

Source: Bloomberg

Sir Philip Green will contribute £363m to a new pension scheme for former employees of BHS, under a settlement arrangement that achieves better outcomes for members than entry into the Pension Protection Fund.

Pressure grows to provide pre-1997 inflation-proofing

Pensions minister Richard Harrington has demanded that the chief executives of companies including Hewlett Packard Enterprise and 3M explain their refusal to grant discretionary increases to members with benefits accrued before 1997.

Savers still keen on cash until pot size grows

Getty Images

Full cash withdrawals are still dominating the retirement income market, according to analysis by the Financial Conduct Authority, as concerns were raised over consumer reluctance to seek financial advice.

Is it time for DC defaults to embrace ESG?

Large defined benefit funds and defined contribution mastertrusts have long been using their investments to engage with or divest from companies involved in controversial practices. Now, a renewed public focus on environmental, social and governance issues, as well as corporate reporting, could convince more to follow. 

FCA market study: All-in fee might not be all-in cure

The consultation stage of the Financial Conduct Authority’s market review of the asset management industry closed last week, with experts welcoming the boost to transparency but remaining reticent over proposals for an all-in fee structure.

LPFA feels divestment pressure

The London Pensions Fund Authority is under pressure from London Mayor Sadiq Khan to divest entirely from fossil fuel holdings, but says it prefers working with companies and fund managers over divesting.

Pru exit doesn't signal death of annuities... yet

Angus Peters

From the blog: Insurance giant Prudential is leaving the UK annuity market, but analysis of ‘at retirement’ product offerings show that guaranteed income still has a significant role in the post-freedom and choice savings world.

 

As the UK’s largest insurer by market capitalisation, it is tempting to read the company’s exit as a sign of the death of annuities, brought about by a trifecta of low interest rates, poor value for money and consumers flocking to take advantage of new freedoms.

 

Indeed investment consultants will often recommend retaining equity exposure in default funds for older savers, in recognition of the fact that many leave some money invested after first drawing a pension.

 

Click here to read the full blog post