Mark Grimes

The UK's biggest pension consulting firms by revenue 💰. PP has analysed the accounts of the biggest pension consulting firms. Check out Jonathan Stapleton's latest article 👇 https://incm.pub/3X3GRS6 #pensions #pensionscheme #employeepension #finance #retirement

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Don't let your pension run out of money An article in the FT today on how to avoid running out of money in retirement. https://lnkd.in/e6DqghKs With some suggested strategies that advisers apparently use for reducing sequencing risk: 1️⃣ Natural yield (living off portfolio income) https://lnkd.in/eEg3-hHq Abraham Okusanya says: Proponents of a ‘natural yield’ retirement strategy have offered little empirical evidence to back their theory. 2️⃣ Cash buffer (living off a cash fund when the markets crash) https://lnkd.in/ew4jApmJ We say .....further analysis shows that it's probably best added to our (chocolate teapot) pile of retirement planning ideas that are "great in theory, less convincing in practice". 3️⃣ A bucket approach (assets held in different buckets - e.g. cash for the short term and equities for the long term). The article suggests that this approach can give a 66% uplift in returns vs a typical balanced portfolio 🤔 https://lnkd.in/eRayTpF5 Michael Kitces says: The aforementioned decision rules bucket approach is actually having no impact at all over the total return rebalancing approach. As with many things retirement planning, it's worth undertaking thorough research to understand what does and doesn't work.

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Consolidating the administration of the country’s thousands of pension schemes is a good idea. Here’s another. Let’s create a market for investments in ultra long dated monthly pay indexed annuities. The asset base is there: a generation of people who unwillingly pay rent to the tune of £100 billion a year. Compare that to the £400 billion asset base at LGPS, the largest funded pension scheme in the country. Pulling 86 local district pools into one administrative unit is complex. Creating a fungible instrument they can all invest in is less challenging. And it’s not mutually exclusive.

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Here at The Society of Pension Professionals we have today published our latest topical pensions paper, this time on Jeremy Hunt's plans to get British pension funds to invest at least 5% of their funds into unlisted British equity and to fully disclose their investment levels. As The Society of Pension Professionals DC Committee member Amanda Small observes, “...Government must be careful that a new reporting obligation like this does not inadvertently channel DC schemes’ investments into UK-centric asset classes that currently neither reflect a robust investment case or meet trustees’ requirements for diversification, sufficient risk-adjusted returns and avoidance of concentration risk.   If the Government wants to encourage greater investment in UK companies then these companies need to offer better risk-adjusted investment returns. Ultimately this is the key driver of trustees’ investment decisions.” https://lnkd.in/d7qGyzTv #pension #pensions #investment #trustees #pensionfunds #Government #hmtreasury #dwp #mansionhouse #policy #pensionspolicy

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Are we lacking in financial education in the UK? For years, people 'in the know' in the industry have been speaking about the outrageous fees some wealth managers like St. James’s Place charge. They're by no means the only ones, but it does seem like they're making all the negative headlines at the moment.... However, in their Q1 report #sjp the #thewealthmanagement giant reported net inflows of 710 MILLION GBP. Previously it felt like only people who were in 'the know' knew about the excessive/off the grid fee structure. However, now it seems like the cat is out of the bag and everyone knows; so where exactly is the 710 Million GBP of inflows coming from? Why would people invest in a model where it seems the only objective is to make as high fees as possible? And is it suggesting that some of the hard working, successful families in the UK, who might be great at what they do in their industries- might be lacking financial education? I don't know what the answer is, but I do know that statistic has bamboozled me. Any thoughts all? #wealth #ifa TPP Edward Davies Siobhan Whelan Dave Robinson FCCA APFS MCSI TEP LLAA IMC Matt Thurlby Richard Hillgrove FRSA #ifa #financialadvisor #ukbusiness

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I deal with lots of ‘normal pension problems’, but I actually find a lot of my client’s concerns are deeper. I’m sharing them in case they resonate with you. By ‘normal pension problems’, I mean: feeling like you aren’t saving enough, lack of clarity on performance, costs, risk, tax etc. But these are the deeper issues I often find: 1️⃣ Investing against your values  Heavy polluters, fossil fuel extractors, weapons manufacturers are found in most pensions, and more people are realising. You can get quantifiable data on this with a simple check and the help of an advisor. They just need your permission to gather information. 2️⃣ Feeling too small to make a difference  We both know the climate crisis, the economy, planetary systems are HUGE problems. They can make our personal actions feel insignificant. But there’s good news! Change begins on the margins in financial markets because asset managers and investors watch where money is going to. So even small changes get noticed and they take action to stop the bleed. 3️⃣ Feeling overwhelmed about where to start  My industry isn’t geared to help with investing in line with your values. Your annual statement is pages and pages of mainly irrelevant small print, fund codes, and regulatory wording. But an advisor can gather exact information on your behalf and explain it to you without jargon. The takeaway is you can use your pension to make a huge positive difference, and it doesn’t need to involve sacrifice. You don’t need to change your lifestyle, give up anything you enjoy, pay more, or lose out on returns. The first step is to speak to your adviser and tell them your concerns. They have to advise you based on your objectives and concerns, INCLUDING ethical ones. #ethicalinvesting #sustainablefinance #sustainability

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Are vulnerable investors falling through the cracks? And how can this be remedied? Driven by some of our most recent UK Consumer Duty data, read the recent Portfolio Adviser article below to find out: #ukconsumerduty #vulnerableinvestors #assetmanagement #portfolioadviser

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The Mansion House Compact is a good initiative to drive UK pension cash into growing companies. To turn it into a great initiative we need to ensure that the funds pledged by 11 pensions providers reach the widest array of unlisted equities in a timely manner. And that means a greater focus on stocks trading on AIM and the Aquis Growth Market - which includes many members of The Quoted Companies Alliance. One year on, we've written to the signatories asking them to shed light on their contributions so far. Thanks to Charlie Conchie and City AM for taking an interest today. #growthcapital #publicequity #smallcaps #midcaps #aquis #aim #investment #ukeconomy #pensions #backbritain Aquis Stock Exchange London Stock Exchange Sir Nicholas Lyons CMIT - Capital Markets Industry Taskforce https://lnkd.in/epwFhtTB

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Thanks Alina Khan for quoting me and Katherine Waller on the FCA’s new Value For Money framework. It is incredibly common for clients to have multiple pension pots that they are only vaguely aware of - let alone whether the provider, investments, cost or performance are optimal. The new system should at least provide some clarity to savers and better information to make more informed choices! #Pensions #Behaviour #ConnectingWealthWithPurpose

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Fortune works hard, but finance bros work harder. Two weeks ago, I spent time at Aviva Investors, learning a lot about how to break into the industry. Here are a couple of the key takeaways -no gatekeeping. 1) Spring Weeks start early! 🏞️ BlackRock's Spring Weeks have already opened. Spring Weeks serve as a gateway to learn about the industry and help you land those coveted summer internships. Use Trackr to find out which application processes are open and start applying! 2) Learn as much as you can 👨‍🏫 When applying for Spring Weeks, they're not expecting you to know everything. However, demonstrating a genuine interest in the industry through attending events, learning about software like Aladdin and Preqin, and keeping up with current affairs will set you apart. Spring week prep is serious, and gaining experience now is super beneficial. Learn about the markets and the basics of what you're applying to. You can sign up for Bloomberg's email list and John Authers' "5 Things" to start your day to stay informed. 3) Ask loads of questions 🙋 In an interview, ask as many questions as you can. Think about what information you would need if you were in the interviewer's place to feel comfortable passing you through to the next stage. Keep going until they stop you for time reasons. Also, ask questions about them as a person. Learn about who they are and try to relate to them. Remember, you're assessing the firm just as much as they are assessing you. 4) Looksmaxx your CV 🗽 Polish your CV to perfection. Tailor it to highlight your strengths and experiences relevant to the finance industry. A well-crafted CV can make a significant difference. Think of it as your personal ad – make it shine! 5) Match your personal values & strengths to the role 💪 Align your personal values and strengths with the role you are applying for. This not only makes you a better fit but also ensures you’ll be happier in your job. 6) Join societies 📈 Get involved with finance-related societies at your university. These provide networking opportunities, additional learning, and can make your CV stand out. Plus, it’s a great way to meet like-minded finance enthusiasts. 7) Actually research the role you want to get into 🧑‍🔬 Understand the specific role you’re applying for. Learn the jargon and the skills required. The more knowledgeable you are, the more confident and prepared you’ll be. Think of it as preparing for a first date – you want to know what you're getting into. 8) Understand the firm and what makes them different Research the firm thoroughly. Know their values, their unique selling points, and what makes them stand out in the industry. This will help you tailor your application and demonstrate genuine interest. Breaking into finance is no easy feat, but with preparation, persistence, and a bit of polish, you'll be well on your way. And remember, even if fortune works hard, you can always work harder. Good luck!

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This 👇 These might seem like eye-watering numbers to some. But this is the reality. However…! It depends…. I have retiree clients who barely spend £1k/month, while others spend £5-10k/month. But… The answer for those not working with a real financial planner is ‘probably MORE than you think’. How much should I save? How much do I need? With careful planning, cash flow planning and advice, it’s far easier to calculate your 🌟 number 🌟

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The advice gap is a growing concern under Consumer Duty regulations. 🛑 Only 9% of people now pay for financial advice, down from 11% in 2023. 🔍 Unprofitable clients are being removed, widening the advice gap. ❌ Many firms are forced to drop clients below new asset thresholds. Addressing the advice gap is crucial to ensuring that all consumers can access financial guidance. Offering scalable and affordable advice options can help bridge the gap and serve a broader client base. That is why we built JustFA - More than a platform We enable adviser firms to launch an online proposition in a matter of weeks, reduce costs, and service clients more effectively. Source - Citywire Debbie Dry Norman MacLeod John Driscoll Alexandra (Sasha) Ilinskaia #AdviceGap #FinancialInclusion #AffordableAdvice _____ If you enjoyed reading this or learned something, ♻️ share this with others and 🔔 follow me Taras Rybak for more.

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"#Sustainableinvesting is complex and cannot be distilled into a single metric" - a quote from SEI #pensions. A fair statement and challenge following a comparison that shows UK #pension providers' #carbonfootprint and tables showing the worst #carbon #emitters. In addition Make My Money Matter, a #climate campaign group, found only 3 Pensions providers with adequate #netzero #climate plans in place. There are definitely issues with comparing industry #climatemetrics and #emissions in the face of imperfect #climatedata from #assetmanagers and #investee companies; and some #engagement strategies and #biodiversity solutions might have higher emissions in the short term. However, having this data is definitely useful for savers and #institutions, and hopefully will be standardised with more #TCFD, #CSRD, and other #ESG disclosures. #sustainability #pensions #assetowners Emily Robinson Kate Martin Pico Analytics

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Pension schemes to play 'key part' in UK growth as funding levels see 'record' highs. John Dunn. Pension schemes are set to play a “key part” in UK growth, analysis from PwC suggests. Check out Jasmine Urquhart's latest article 👇 https://incm.pub/3Yp4kOh #pensions #pensionscheme #employeepension #finance #retirement

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🎯 Savings Market News: Creating New Savers 🎯 📈 Money and Pensions Service aims to create 2 million new savers by 2030 through a new Savings Charter, as part of the UK strategy for financial wellbeing. 💷 It will help address the 11.1 million working-age adults in the UK who have low to moderate salaries and do not save regularly, leaving them vulnerable to unexpected bills and financial instability. The Charter outlines five commitments for savings providers: ▪ Demonstrating a commitment to financial security ▪ Assisting individuals in understanding their financial goals ▪ Ensuring access to savings when required ▪ Keeping customers informed about their options ▪ Promoting savings in communities, workplaces, and educational settings. Report 📑 https://lnkd.in/ecEJN8w4

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At some point or other, all UK pension trustee boards are going to encounter a problem with one of their advisers that’s big enough to trigger a full market review. In our latest article, ZEDRA’s Director of Trustee Executive Services, Manjinder Basi and Better Decisions Founder, Paul Richards share their combined insights on the psychology of replacing pension scheme advisers. Manjinder and Paul work through some of the key issues for trustees to be aware of and how they can manage them, so that boards can make a confident and effective decision. Read the article via the link in the comments, or contact Manjinder to find out how we can help you to tackle whatever pension scheme or pension trustee board challenge you are facing. #PensionTrustees #UKPensions #PensionScheme #TrusteeBoards

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Vulnerable customers are on the FCA's radar & there's a lot of evidence around that this issue is consistently underestimated by the industry. I think we'll hear more on this in the coming months. This year's Schroders Adviser Survey finds that 72% of advisers report that fewer than 10% of their clients display a vulnerable characteristic. One-third think it's fewer than 5%. I find this very surprising, given how broad the regulator's definition is. When we ask clients, we get a very different picture - it's much higher than this suggests. The research, conducted in April 2024 with over 1,000 advised clients with £100k+ in investable assets, showed that 22% of all advised clients report at least one vulnerable characteristic. The main sources of reported vulnerability amongst advised clients are: Financial vulnerability (9%) Mental health (7%) Emotional vulnerability (6%) The FCA’s definition of vulnerable customers is fairly broad. And any assumptions that typically wealthier advised clients do not fall into this camp are to be challenged. Over half of all vulnerable advised clients have investible assets of > £500,000. Here's a commercial angle for advice firms. A better understanding of vulnerability could be an important factor in retention. Vulnerable advised customers are more likely to change advisers. Their reasons for switching are diverse - dissatisfaction with investment performance, lack of proactive market response from advisers, or not receiving regular financial reviews (ah - ongoing servicing, again) - unlike the average advised customers who primarily switch due to adviser retirement. Thinking about how to better support vulnerable customers is a very difficult problem. On the one hand, there’s a commonly held assumption about a vulnerable customer, which can mean people overlook seemingly stronger, younger, or more affluent clients who may well be classified as vulnerable right now because ‘life has taken an unforeseen turn’ at a given moment in time. A challenge for the industry is that once you identify a vulnerable customer, the governance ramps up in a way which adds cost & complexity, & could ultimately lead to exclusion for some clients over the mid-term. I've heard of someone being effectively denied a loan once they were classified as vulnerable, and a fairly simple online journey turned into a requirement for an hour-long phone call. Not easy when your vulnerability is being deaf! There are also some uncomfortable questions about to what extent providers really want to find this information out, or how they ask the question. And then what they actually do with this knowledge. I don't think this is easy. But I think it's a question that needs to be asked. And the data we have on advised clients, DIY investors and fund investors tell me the industry is underestimating this challenge. Thanks Gillian Hepburn for sharing the Schroders study. #vulnerablecustomers #financialvulnerability #consumerduty

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