Press Releases

Commenting on TPR’s annual DB landscape report published today, Laura McLaren, Head of DB Actuarial Consulting, Hymans Robertson, said:

“The Pensions Regulator’s latest annual report on defined benefit (DB) occupational pension schemes as at 31 March 2023, underscores that the landscape has changed rapidly over the last couple of years...

Most people will now have to work longer, or be able to afford much higher pension contributions, to maintain the same level of the PLSA’s Retirement Living Standards (RLS), according to Hymans Robertson’s analysis of the PLSA’s updated figures. The leading pensions and financial services consultancy analysed how different combinations of contribution rate and salary impact the chance of achieving the latest RLS, following the PLSA’s announcement that double-digit increases in annual retirement income are needed this year to achieve Minimum, Moderate, and Comfortable standards of living. The firm warns that trustees, providers, and employers must communicate clearly with members, encouraging them to set, and monitor their progress against, their retirement income target.

Challenges such as a weak economic outlook, combined with the allure of high cash rates could trap retail investors in a cycle of short-term thinking, warns Hymans Robertson Investment Services (HRIS). Upcoming elections could be another significant driver of short-term-thinking for Advisers’ clients, they further warn. To avoid getting caught out, retail investors should be taking a long-term strategic approach, supported by robust diversification, says the leading DFM.

Commenting on the Bank of England’s interest rate hold today, Chris Arcari, Head of Capital Markets, Hymans Robertson, said:

“The Bank hasn’t cut interest rates this month because it’s being cautious, with lingering concerns about some elements of domestically-driven inflation. But it recognises the strong progress on inflation largely driven by supply-side developments, and agrees with consensus forecasts that headline CPI inflation will fall below the 2% target by or in the summer. And this comes at a time where UK real growth, realised and forecast, is very weak."

2024 will be a year of unprecedented change for the risk transfer market, says Hymans Robertson as it issues its annual risk transfer report today. The leading pensions and financial services consultancy’s report expects 2024 to see more insurers competing for buy-ins, with a record volume of multi-billion pound transactions and more use of alternative risk transfer options and captive insurance solutions. These changes represent excellent opportunities for well-prepared pension schemes of all sizes, as there will be more competition at both the large and smaller ends of the market. There will also be a greater variety of established risk transfer options for pension schemes to choose between, helping to solve different endgame objectives.

Comments from Laura McLaren, Head of DB Actuarial Consulting, and Iain Campbell, Senior Investment Consultant.

DB and DC pension trustees investing in the blue economy need a thorough risk management process, warns Hymans Robertson in its report Why oceans and marine biodiversity matter as investment issues, published today. This process will help schemes understand which opportunities align best to their goals and successfully navigate the dual impacts of climate risk and nature loss, claims the leading pensions and financial services consultancy. The report highlights that opportunities for investors include renewable energy, shipping, tourism, fishing and blue technology. Each of these sectors has unique risks but also the potential to deliver significant returns both for investors and the environment. 

Hymans Robertson, the leading pensions and financial services consultancy, is proud to announce that it is a founding signatory of the new Sustainability Principles Charter for the bulk annuity process. It was developed in partnership by Accounting for Sustainability (A4S), The Church of England Pensions Board and Railpen.

Commenting on the revised DB funding and investment regulations published today, Laura McLaren, Head of DB Actuarial Consulting, Hymans Robertson, said:

“The regulations have some welcome changes while keeping the same framework. The updates have addressed some of the biggest concerns, including inconsistencies with the draft code of practice. Changes to reflect the government agenda to encourage scheme investment in productive finance, means fears that some schemes would be hemmed in, or herded towards very narrow low-risk investment strategies, have been reduced. A fixed basis for maturity will help schemes map out their funding and investment strategy with a clear target date that won’t jump around with market conditions...

Over two thirds (68%) of corporate sponsors of DB pension schemes said it’s likely that they’ll increase their use of professional trustees in the future, according to a survey by Hymans Robertson. The research also found that over two thirds (70%) of companies expect to review their trustee boards at least every six years or less. The leading pensions and financial services consultancy welcomed these findings, as schemes will need boards with expert skill sets to meet the expectations of TPR's new General Code, and the evolving sophistication of endgame strategies. These changes are likely to see schemes focus on governance models utilising more specialist skills sets and trustees with operational experience of delivering complex projects such as buy-in to buy-out strategies.

Commenting on its response to the Government’s pot for life consultation, Paul Waters, Head of DC Markets, Hymans Robertson, said:

The lifetime provider model - so-called ‘pot for life’ - does not tackle the savings adequacy challenge for DC savers. The government’s proposal risks making the situation worse by placing more responsibility on savers and away from employers, without addressing how overall savings rates will be increased. Many DC scheme members lack the financial education and confidence to choose their own pension provider. The pot for life model risks members making poor decisions based on the cheapest or best marketed solutions, rather than those offering the best value for money.

Commenting on expectations for Consumer Price Inflation (CPI) in December 2023 to be announced tomorrow (Wed 17^th Jan 2024), Chris Arcari, Head of Capital Markets, Hymans Robertson, said:

“Consensus expectations are for headline CPI inflation to have eased a little to 3.8% year-on-year in December, from 3.9% year-on-year in November...