Summary of new funding regs: don't take any risk, but invest in growth assets obviously. And get as much money as you can, but don't damage the company. And invest in a low risk way. Unless you dont.
“It feels absurd that current government policy means that pensioners are getting a big pay rise on one hand but frozen tax thresholds are effectively taking part of that increase away.”
... let's not give them the "big pay rise" then
https://t.co/nOR35WAlvf
"Loosening the purse strings for our pensions may not be a good idea"
Spot on here... telling pension schemes how to invest would be a bad idea in my view. If the opportunities were attractive the investment would follow.
https://t.co/B5aMAnHxtC
"We must act now to prevent a real pensions crisis developing in future"
I agree the are some looming issues, but as these are currently hidden it will be hard to drive change now. Increasing AE minimum rates must surely be a key part of the solution.
https://t.co/H9okypCLa6
The ship has sailed, most DB pension are too well funded to contemplate moving from bonds to equities. Also, equity allocations are generally based on market capitalisation in my experience rather than any specific biases. UK is c3% of global market cap
https://t.co/Q36OFWudS7
@ftfinancenews@JohnRalfe1 Schroders of course provide fiduciary management ("Sitting at the heart our approach is risk management, with a segregated approach to LDI, so you can do more with less capital.") https://t.co/IACxAnO5ha
@LongPensions I would apply the test on a cumulative basis, eg look at "total earnings inflation since 2020" and "total inflation since 2020". Still protecting versus inflation and earnings but without ratchet effect
@jimconey "The people of this country have had enough of experts" vibes on your comments on actuaries! Maybe we should ignore everything all journalists say because of phone hacking and Hillsborough reporting? But no hard feelings, thanks for the articles & good luck in the future!
The triple lock should be reset to apply on a cumulative basis. So inflation would be given this year, but the amount given above earnings would be clawed back if earnings inglation is higher in the long term. Politically ok whilst reducing long term cost?