Sync Savings’ Post

Back in 2020 the Money and Pensions Service published the UK Strategy for Financial Wellbeing. It set out 5 ambitious goals for the UK, one of which was for 5 million more working-aged "struggling" and "squeezed"* people to start saving regularly. How could the UK achieve this? We gathered together a group of savings experts, led by Marlene Shiels, OBE, FCBI (Hon) of Capital Credit Union UK to develop a plan and a set of recommendations. One of the initiatives they proposed was a Savings Charter: a set of commitments that savings providers can sign up to in order to help raise the profile of savings here in the UK. The five commitments were then developed by a small working group of savings providers representing banks, building societies, credit unions and the fintech industry. The work was led by my colleagues, Michael Royce and Anthony Karabinas. And to align with the Building Societies Association's #UKSavings campaign we've launched it this week: https://lnkd.in/ewpS6Ye9 If you work for a savings provider, however big or small, please encourage them to sign up to the Charter. Many thanks to all those involved in the Nation of Savers Challenge Group who came up with the idea, and to the working group who developed it, and to Michael who is its driving force. * You can learn more about what we at MaPS mean by "struggling" and "squeezed" here: https://lnkd.in/d_HZ8PGB #uksavings #savingsgoals

There is much the ABI and its members agree with in Martin Wolf’s column “Pensions reform is vital to raise the UK’s dismal savings rate”. The review undertaken by Emma Reynolds, joint Treasury and DWP minister for pensions, is indeed a once-in-a-generation opportunity to create a pension system able to enhance both prosperity and security. We also very much agree that higher pension contributions for most people in workplace schemes than today’s 8% cent are vital to ensure the UK invests more and defined contribution savers can look forward to a more secure retirement.   But to suggest residual DB schemes are “expiring miserably in the arms of the insurance industry” is not only a rather outré metaphor, it fails to appreciate the huge advantages of pension risk transfers: Savers benefit from a cast-iron, lifelong guarantee for the pension promises made to them by their employer, scheme sponsors can focus on their businesses rather than on running a legacy pension scheme on the side, and the UK economy benefits from buy-out insurers investing pension money directly in the fabric of UK society, from financing the green energy transition to urban regeneration. In short, DB schemes are in excellent hands with insurers. Conversely, consolidated CDC schemes (which are yet to exist beyond the new Royal Mail Scheme) promise much but the benefits are over-hyped. A shift from DB to CDC would also replace a guaranteed income with a target – this idea has never been on the table because it is widely accepted that pension scheme members’ accrued rights must be protected. #PensionInsurance #WorkplacePensions #DBPensions

Calling the Self Employed (and Company Directors) The Institute for Fiscal Studies (IFS) has returned to one of its favourite pension topics: provision for the self-employed, or rather the lack of it. They have just written a 50 page report and it does not make great reading. 😬 Main takeaway is that 80% of the SE do not contribute to a pension. Some of the 80% may have invested in property but the majority of that 80% will have no personal provision for life after work and will have to rely on the State Pension 😬😬 With all the tax-breaks available for pension contributions the SE need to consider contributing to a pension. Its never too late to start - (time to roll out one of my favourite proverbs): 'The best time to plant a tree was 20 years ago, the second best time is now' https://lnkd.in/exH5DjtN

Over £50 Billion in Pension Savings at Risk of Being Lost in the UK, as Number of Pensions Set to Surge Rebecca O'Connor FRSA, Director of Public Affairs at PensionBee, commented: “The amount of money lost track of in old pensions is already eye-watering, with more than £50 billion already at risk of being left behind, but is set to reach national crisis levels over the coming years, as the number of pots accumulated through work rises and with it, the number of lost pensions. This research suggests the problem of lost pots is growing more urgent every year. The Government is working on a number of solutions to help solve it, including pension dashboards and new ‘pot for life’ proposals. “For anyone who loses track of pensions, the result can, unfortunately, be a poorer retirement. It’s important to keep track of old paperwork, employer and pension provider names and policy numbers and if you would prefer to keep pensions together, consider consolidating them in one place.” https://lnkd.in/e9aHKPVq Christopher Breen Cebr #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Another quiet week in Pensions? Ha, as if… Nope, (yet) another busy one….   Firstly TPR’s interim response on its Statement of Strategy consultation, eagerly anticipated and welcomed after concerns were raised over the additional burden of the proposed SoS requirements. TPR has reduced some of the information requirements for some schemes (e.g. Fast Track and smaller schemes, and DB schemes viewed as less risky). My colleague, Louise Pettit, takes a look at this and the new funding regime:-   https://lnkd.in/eFqRrP29   And my colleagues, Mairi Carlin and Pensions Partner, Susannah Young, consider steps corporate trustees can take ahead of the remaining provisions of the Economic Crime and Corporate Transparency Act 2023 coming into force:- https://lnkd.in/eaBv_sk9

"Everything will go through the pools rather than through local authorities,” says the Chancellor Rachel Reeves in today's Financial Times. The government intends the pools to manage all the LGPS assets rather than around only half of the assets. The government is set on recreating a Maple 8 style system. The article also says: "Reeves said she was also targeting a minimum size for multiemployer defined contribution pension schemes of £25bn to £50bn, which she called a 'massive change'." These auto-enrolled pension scheme assets are either in master trusts or contract-based schemes. This looks like it will further accelerate master trust consolidation but I'm more interested in how contract-based schemes will 'consolidate'. While there are plenty of pension providers, there is a pareto principle in operation with most assets consolidated in around five to six large providers. There is lots of consolidation work potentially required for legacy DC schemes and around GPPs - I wonder if this legislation will address those issues. What do you think? #pensions #consolidation #LGPS #pooling #definedcontribution #autoenrolled #GPP #mastertrust https://lnkd.in/e3hR5qCG

Great to see coverage of this topic, which I know is of utmost importance to our UK defined contribution (DC) team: https://lnkd.in/eAER89rP In the wake of this year’s Spring Budget, the team argued that a preoccupation with the Australian pensions market – alongside proposed measures to increase UK pension scheme investment in ‘productive finance’ – were, at best, misguided. To meaningfully change retirement outcomes for today’s working population, higher contributions and better net investment returns are what’s needed. For more on this topic, check out the team’s last two blog posts: Spring Budget 2024—an opportunity missed? https://lnkd.in/e7KATZ-g Just how should we assess value for money (VFM)? https://lnkd.in/e56nhePg

With the #UKGovernment’s budget announcement tomorrow, we are hopeful for further investments in key areas such as funding for citizen-facing services, potential adjustments to pension schemes, and broader economic measures that could impact citizens’ financial planning.   Reflecting on the findings from our interviews with senior civil servants in this year’s #CX50 2024, produced by Marketing Week in partnership with our partner Adobe and us, it’s clear that public sector leaders are redefining citizen experience (CX) by making services more accessible and effective for everyone. These professionals are tackling the unique challenges of serving an entire nation, ensuring that government services are as intuitive and user-friendly as any commercial product.   A prime example is the commitment of #Pensions Minister to the UK Government’s £300 million DWP Digital Pensions Dashboards project. This initiative aims to provide citizens with a seamless and transparent way to manage their pensions by allowing them to view all their pension information, including their #statepension, in one place online. Despite a revised delivery plan, the project is set to transform how savers access their pensions, making it easier for people to make informed decisions about their financial futures.   These developments are crucial for enhancing the quality of services and ensuring that every citizen can benefit from improved and accessible #CX. Link to article: https://lnkd.in/eSzmJthE Link to our CX50 2024 report: https://lnkd.in/e-Se5RY3 #PublicSector #DigitalTransformation #UKBudget2024 #moneyandpensionsservice Rishi Shrivastava James Lennon Simon Lye Paul Murphy

The next phase of the Mansion House reforms is here! Was great to see the DWP consultation launched on Options for DB schemes on Friday afternoon, including more detailed consultation questions about the LCP Powering Possibility in pensions idea! Quick out of the blocks as always, LCP's Jonathan Camfield has already written a blog about what it means, including thoughts on the LCP idea, surplus extraction more generally, and the idea of PPF as a consolidator. It's well worth a read, as is the (short-ish!) consultation itself given the potential significance for new strategic options for all DB schemes. We've already heard from some schemes pausing and re-checking their strategic direction in the run-up to and since the launch of this consultation. It is potentially big news for our industry so well worth careful consideration. Very interested to hear initial reflections from others - do you think this is good news? Are you thinking about what it means for your schemes? Here's the blog: https://lnkd.in/eQcTsHxD And see here for more info about our idea including an FAQ: https://lnkd.in/eY45kaeA

📜🔍There’a major pensions review underway - and at the BVCA we welcome it enthusiastically!   We are very encouraged that the Government has brought forward the review so quickly.   The Chancellor now has a real opportunity to deliver #economicgrowth by facilitating increased investment in UK businesses to the benefit of returns to pension savers as well as the wider economy.   Legislative and policy changes, including further consolidation of #pensionschemes to increase pension schemes’ ability to deploy capital into UK #privatecapitalfunds are vital, as is greater industry partnership.   The BVCA’s Investment Compact has already brought together over 100 growth capital and venture capital firms committed to working with pensions schemes to consider effective structures that attract investment.   If the Government is ambitious and considers a wide range of options in this review we are optimistic that this will deliver the clear roadmap we have called for, building on the work of the BVCA’s Pensions and Private Capital Expert Panel.      The Chancellor’s Pensions Review will add further impetus to the work of the Investment Compact for Venture Capital and Growth Equity of which the Expert Panel is a key element, which has brought together the private capital and pensions industries to support pension savers and to encourage investment from pension funds into unlisted equities.   There has been significant progress through this collaboration.  We are already developing a greater understanding of the ways we can work together to deliver new options for UK pension savers at the same time as supporting high growth, innovative UK companies with new sources of capital. The Review offers us the opportunity to develop this shared agenda further and deliver better outcomes for all the stakeholders.  Association of British Insurers Pensions and Lifetime Savings Association Rob Barr John Chilman Andy Gregory Hannah Gurga Allan Marchington Matthew McNally Dan Mikulskis Neville Howe James Mitchell camilla richards Julian Mund Ruston Smith MBA, FPMI, FCMI, FRSA Benjamin Wilkinson Tom Wrenn Kerry Baldwin   The UK Pensions Summit, histed by the BVCA on the 11th September, will provide a further opportunity to continue to engage with the Government, building on the momentum of previous work todeliver better potential returns for savers and boost economic growth. Matthew Sabben-Clare Garry Wilson Charlie Troup Chris Barnes Andrew Williamson Philip Newborough Richard Swann Joana Scaff Amy Mahon @johanna barr   #privateequity #venturecapital See more here: https://lnkd.in/eak_jeZg