Press Releases

The value of bulk annuity transactions is expected to be about £25 billion for the first half of 2023, according to predictions by Hymans Robertson. With this expected level being at an all-time high schemes will need to embrace change in the way they approach the insurance market, warns the leading pensions and financial services consultancy. It claims there will be a need for a more targeted approach, driven by scheme size.

Consumer Duty could have an impact on IFAs’ business models, warns Hymans Robertson Investment Services (HRIS). The regulation provides clarity on what it expects from MPS manufacturers and distributors, but some firms may get caught out if they are unaware of how their operations are viewed by the regulator, warns the leading DFM.

Commenting on the Government’s response to the DWP’s consultation on the consolidation of DB pension schemes, Iain Pearce, Head of Alternative Risk Transfer, Hymans Robertson, said:

“It is good to see the Government moving to provide more clarity for the superfund regime to support decision making for providers and pension schemes alike and sees the clear potential for superfunds to play a part in the wider objectives to push to utilise capital in pension schemes to stimulate economic growth...

Comments from Jon Hatchett, Senior Partner, and Paul Waters, Head of DC Markets.

Commenting on the DWP/FCA/TPR pensions Value for Money consultation outcome published today, Rona Train, Partner and Senior Consultant, Hymans Robertson, said:

“We welcome the joint response and view many of the proposed developments as being positive in terms of delivering better long term outcomes for members. In particular, we support the focus on forward looking, projected outcomes as well as past performance. With the increased availability of funds, and the greater ease with which schemes can now invest in private assets, we’ve seen and will continue to see, significant development in investment strategies. Past performance focus alone would mask those recent developments. We’re also pleased to see consultation on the use of consistent assumptions to be used across schemes. This will remove the potential biases caused by firms using different assumptions to assess the future returns of their strategies...

Commenting on the government’s response to the DWP’s consultation on Collective Defined Contribution (CDC) pension schemes, Kathryn Fleming, Partner, Hymans Robertson, said:

“It is great to see yet another step forward in realising the goal of CDC having a key role in improving the retirement outcomes of many current and future savers. As a pension industry where DC savers have just gone through a period of investment volatility, resulting in some of those close to retirement losing value on their DC savings and having to delay or change their retirement plans, the attractiveness of CDC and other simpler to deliver, innovative risk sharing solutions, is in demand...

Commenting on the DWP and HMT consultation on pension trustee skills launched today, Laura Andrikopoulos, Partner and Governance Consulting lead, Hymans Robertson, said:

“We are pleased to see the interest DWP and HMT are taking in Trustee skills and effectiveness. Their main concern seems to be the ability of Trustees to make investment decisions but the review may also have wider benefits. The consultation covers the current state of Trustee skills, the role of advice and barriers to trustee effectiveness. Proposed ideas in the consultation include a requirement for TPR to keep a full register of all Trustees and strengthened Trustee accreditation regimes. In the barriers to effectiveness session, Trustees’ fiduciary duty is questioned, with an implication that current interpretations may be holding Trustees back from considering a wide range of investments. The timing of the consultation reflects wider calls from the Government to re-think pension scheme investments. Pension schemes are enormously influential in financial markets and provide vital income for their members in retirement so we welcome debate on how their assets are best invested to ensure optimal member outcomes.”

Commenting on the Chancellor’s proposals to change how the Local Government Pension Scheme invests, Philip Pearson, Partner, Hymans Robertson said:

“With the government announcing a consultation about its ambition to double existing LGPS investments in private equity to 10%, it is important to note that private equity is already playing a big role in the portfolios of long-term investors like the LGPS. Responsibly managed private equity investments can have significant positive impacts in the communities in which they are made, such as job creation and the promotion of innovation. LGPS funds are generally alert to these benefits and many funds are already invested...

Innovative thinking must be urgently embraced by the DC market if members are to receive the income they’ll need in retirement, warns Hymans Robertson, as it launches a new report – Risk sharing: an age old solution to an age old problem. It says that greater innovation in the options offered by Providers and financial advisors to pension savers could increase their retirement income by 20%¹. This would be a lifeline for the majority reaching retirement with less savings than required for a decent standard of living. The leading pensions and financial services consultancy’s report explores a range of existing and new risk sharing options, which it claims the industry must comprehensively adopt.

Commenting on The Pensions Regulator (TPR)’s 2022 DC schemes survey published July 2023, Rona Train, Partner, Hymans Robertson, said:

“The statistics show that small schemes are not receiving value for members’ money. And the proportion of schemes not knowing about the Enhanced Value for Members assessment is very worrying...

Employers need to up their game by giving better support to their DC pensions scheme members affected by the changes to the Lifetime Allowance (LTA) and Money Purchase Annual Allowance (MPAA) announced back in March in the Spring Budget, warns Hymans Robertson. The leading pensions and financial services consultancy made the call after a poll of a representative group of employers during a recent webinar found that three quarters (74%) did not have support in place to help members make choices that would be right for their circumstances.