Press Releases

“Many individuals and corporate sponsors will need to carefully consider the implications of proposed increase in age at which pensions savers can access their pensions without penalty to 57. In particular it will have an impact to the decisions on the timing of when they take their pension benefits. Individual pension savers could be put off by changes that on the face of things may just sound like you need to work for longer and money is locked away. In the current environment saving for retirement and what that looks like may mean this may feel unpopular."

“It is great to see the Pensions Schemes Bill finally complete its long journey through parliament and receive Royal Assent. Beset by delays caused by Brexit and the ongoing impact of the COVID-19 pandemic, to many this will feel it has been a long time coming. However, although the new Pension Schemes Act lays the foundations for changes to many areas of pensions legislation, it is really just the first step."

£1 trillion of risk from DB pension schemes is expected to have been insured by the end of 2031, according to analysis by Hymans Robertson as it publishes its 2021 Risk Transfer Report today. The annual report analyses the rapidly growing market for Defined Benefit (“DB”) pension schemes to transfer their risks to insurance companies, via bulk annuities (“buy-ins” and “buy-outs”) and longevity swaps.

“We are pleased to see that the Government has heeded the comments of respondents, including ourselves, who called for members to be allowed to make a benefit choice at retirement (the Deferred Choice Underpin) rather than be forced to make an immediate election based on assumptions (the Immediate Choice Underpin)." 

“We are supportive of The Pensions Regulator call to action on Climate Change, and today’s report provides welcome focus on this subject. Climate risk is a material financial risk, particularly for those with the longest time horizons such as DC members. The pensions industry has a collective responsibility to ensure the potential impacts of climate change are properly understood, and strategies put in place to mitigate the risks capture the opportunities."

At the same time Andrew Udale-Smith and Leonard Bowman from Bath Actuarial Consulting (BAC) will be joining the firm as new Partners. The acquisition will boost the leading pensions and financial services consultancy’s already strong offer to corporates across the DB and DC market.

“DWP’s response to the consultation on climate governance and reporting requirements is welcome and we’re pleased that several of the changes we advocated for have been reflected in the updated policy proposals. Changing the requirements for trustees on the frequency of both scenario analysis and reporting is appropriate given data availability and the meaningfulness of such assessments. We want trustees to engage with climate change and the analysis they undertake should allow them to take informed action, rather than box tick."

Hymans Robertson announces today that it intends to be net carbon zero from 2021 and pledges to halve its carbon footprint by 2025. As it celebrates its centenary, the leading pensions and financial services consultancy also plans to be lifetime net zero carbon by 2025, meaning it will have offset all its carbon emissions dating back to its formation in 1921.

“Given the tone of TPR’s response, it seems unlikely the key principles underlying the new code are set to change fundamentally. However, there is some welcome reassurance that TPR will address the concerns raised by respondents... "

“We welcome the DWP's conclusions and support maintaining the charge cap at 0.75%. Over time, it’s likely that we will see more investment innovation in the DC marketplace and schemes should have the ability to add more sophisticated strategies to their default arrangements where they believe these will genuinely improve net of fee outcomes for their members."

Commenting on her expectations for DB schemes in 2021, Susan McIlvogue, Head of DB Pensions, Hymans Robertson says:

“2020 has been a year like no other, and the implications of Covid-19 on health, wealth and jobs will undoubtedly further impact in 2021. With Government support for businesses ending in the Spring, it will be sadly inevitable that some DB scheme sponsors won’t survive. Whilst many of these schemes will fall into the PPF, we predict that some will go down the new route of commercial consolidation. For schemes with ongoing but weakened covenants, there may be little choice but to lengthen funding plans and implement additional protections.

Nearly a quarter (22%) of FTSE 350 DB schemes with rated sponsors expect corporate insolvency before they reach buy-out according to analysis from Hymans Robertson in its annual FTSE 350 DB Report. This is a timely warning given the increasing numbers of high-profile High Street insolvencies leading to pensions cuts, claims the leading pensions and financial services consultancy. It cautions that these schemes can expect sponsor insolvency to trigger early wind-up, forcing annuitisation and potentially a haircut to members’ benefits and should be putting measures in place to mitigate this risk.