Barnett Waddingham’s Post

💼 Government Launches Major Pensions Review 💼 Exciting news from the UK government! Rachel Reeves, Chancellor of the Exchequer, has announced a comprehensive pensions review aimed at boosting growth and productive investment in our economy. This initiative could potentially unlock £8 billion from defined contribution (DC) schemes, delivering higher returns for pensioners. The review, led by Emma Reynolds, the joint Minister for Treasury and Department for Work and Pensions, will explore broader investment strategies. It's not just about monetary growth but also about improving outcomes for pension pots, which might see an increase of more than £11,000 for savers in DC schemes. There's also a focus on the Local Government Pensions Scheme, valued at £360 billion, and reducing the £2 billion fees currently being spent. Moreover, the government is working collaboratively with industry leaders. This week, Reeves and Reynolds will chair a roundtable with the pensions industry to kickstart engagement and drive these reforms. Their goal? To ensure our pensions systems are robust and capable of delivering greater investment in UK markets—as well as securing better retirements for future generations. #PensionsReview #Investment #UKEconomy

Britains public sector pension bill is massive. There is much talk of the need to reform the state pension and triple lock but I hear little of the need to reform the enormous cost of public sector pensions which public sector workers receive in addition to the state pension. The cost of these pensions is c30% of salary and they are vastly more generous and costly than private sector pensions.

Labour has already come out strong in announcing its own packages of pensions reforms, making clear its position to take a harder stance on consolidation across the pensions industry. Today we’re delighted to bring together voices from across the industry to discuss the challenges and opportunities associated with moving towards a more consolidated model. The reasons for consolidation have been well voiced by both politicians and regulators: bigger, more professionally governed schemes which have the scale and sophistication to invest in a broader array of assets – dovetailing neatly with the current and previous government’s ambition to unlock pension capital in support of UK domestic investment markets. But what is the reality of moving towards a more consolidated market; what are the obstacles that could block this path; how viable is this vision in a complex market like the UK; and how does this fit alongside other systemic changes such as enhancements for auto-enrolment? Moreover, if this reality is met, would it really deliver on the promises to turbo charge investment into domestic assets? Thank you to Maggie Kearney, Tim Middleton, Tom Barton, Andrew Cheseldine, Elizabeth Fernando and Charlotte Moore who join us today to debate these issues and more in our pensions panel, “The Consolidation Conundrum” Gabriella Ruggiero Daisy Hall Nirmalee Wanduragala Josh Cameron Terri Garratt

The Chancellor gave her Mansion House speech last night, promising reform of the pensions industry. We're pleased to see that the Government wants to increase savings for retirees and is encouraging investment into the UK. It's great to see the government’s focus on UK growth, which will mean better quality of life for savers. However, the Government needs to make sure that our hard-earned money is no longer invested in damaging industries like fossil fuels, unhealthy foods, and those built on unfair wages. 🏭🍔💰 The current Pensions Review presents a chance to fix the flaws in the current system, supporting savers and helping to build a more sustainable economy for us all - yet the Government need to incorporate more into their plans to deliver the changes we need to transform this system. We need your help to make MPs take notice! 📣 With pressure from their constituents, like yourself, MPs could ensure that a greater number of important issues are addressed by the Pensions Review and influence what’s included in the upcoming Pension Schemes Bill. Write to your MP using our handy tool: https://lnkd.in/eaqF_8Uq

Success for Brad Pomfret KC in pensions case in Court of Appeal. On 15 November 2024, the Court of Appeal handed down judgment in Manolete Partners plc v White [2024] EWCA Civ 1418, which establishes that occupational pensions not yet in payment are protected from enforcement by creditors of the pensioner pursuant to sub-section 91(2) Pensions Act 1995.   The High Court (in [2023] EWHC 567 (Ch)) had made an order against the Appellant, Mr White, requiring him to draw down the whole of his pension so that it may be enforced against by his creditors, in particular the Respondent. Having considered the legislative history of s91(2) and the basis of the court’s jurisdiction to grant injunctive relief, the Court of Appeal held that the order made below was prohibited by the words of the sub-section, and set it aside.   Brad Pomfret KC of 23ES acted for the successful Appellant, leading Reuben Comiskey of Radcliffe Chambers, instructed by Edwin Coe LLP. All acted pro bono, having been referred the case by Advocate (the Bar pro bono charity).   The judgment appears here: https://lnkd.in/e5EVEEQe  

💰 Britain’s public sector pensions bill is now larger than the size of the #UK economy after it soared past £2.6 trillion for the first time, official figures show. The Treasury said #NHS pension liabilities alone had climbed above £1 trillion, while the cost of future #pension promises to millions of public sector workers including doctors, civil servants and teachers ballooned by £333bn to reach £2.64 trillion in the 2021-22 financial year. The jump in liabilities was driven by a substantial downgrade to #Britain’s growth prospects, which raises the predicted cost of funding gold-plated final salary or #career average schemes that offer a guaranteed income on #retirement. Sir Steve Webb, a former pensions minister, described the £2.6 trillion figure as “eye-watering” and larger than the size of Britain’s #economy. Read more here ⬇️ https://lnkd.in/e83uHBZV

Hi, it’s Deborah and Euzi The Department for Work and Pensions has warned "don't miss out" on a tax-free benefit worth an extra £3,900 a year… https://buff.ly/49lt2ku #legaladvicefordivorcematters #legaladviceforlandlordandtenantmatters #legaladviceforemploymentmatters #mackenziefriend #helpingyoutopreparetoattendatcourt #affordablelawforyou #bespokelegaladvice

Number of workers ineligible for AE rising rapidly This excellent article on research from the Pensions Policy Institute, reports on pension membership, pensions adequacy and initiatives to improve investment returns. It highlights all the areas that the pensions industry has been developing for many years but with limited success. The article is skeptical that bringing new investment opportunities to defined contribution pension schemes, such as private equity and other long term productive assets, will improve member outcomes. After all, these tend to be volatile, illiquid and costly. However, realistically would a few pounds a week more contributions and a few percent more investment return on top of where we stand today be adequate to fund living costs and later care? A pension is very expensive. This is a gloomy picture but those with generous pension schemes from employers such as those in the public sector or financial services sector will fare much better. It was expected from the start of Auto Enrolment planning that legislating for a mandatory pension scheme would result in the minimum statutory contributions becoming the maximum that employers and members would pay, and this is what the report finds. In the last few years, with Covid and the cost of living crisis resulting in members ceasing their contributions, and with the ability to cash in pension accounts since 2015, it is clear that the majority of workers will not have a worthwhile pension by the time they need it, if they have any at all. The problem needs to be looked at differently. Politicians realise they need to fix the health service and care sector – mammoth tasks – so at the same time they should look at an integrated birth to death ‘health-and-wealth-fare system’, utilising public and private sectors and streamlining much of what we have now. Simplifying the tax and benefits systems by ‘rounding-out’ all the exceptions, these rules try to cover, should save billions. Reducing red tape but ensuring greater accountability and enforcement could possibly help mitigate the massive costs of renewal. Pensions of course would fit in here. Pupils would learn in the school system everything they needed to know about their lifetimes financial requirements. Then we would have engaged pension savvy citizens. #financialservices #pensions #financialwellbeing #UKparliament

Headteachers are calling for clarity on the potential reinstatement of the pension savings Lifetime Allowance. Speaking to The i Paper, I noted the anxiety among senior education professionals, and emphasised the need for clear guidance to enable them to plan their futures effectively. https://lnkd.in/eWtpxMxs #Education #FinancialPlanning #LTA #Pensions

Data Quality – TPR urges action: with TPR talking about enforcement action, it would be sensible for Trustees to check what common and conditional data scores were disclosed in their last Scheme Return and when these were last updated.