Pension Clicks

In this edition of Pension Clicks, we share our quarterly summary of pensions issues in In Sight, and launch our new guide covering how behavioural insights can help you navigate through pensions de-risking, while our article looks at how status quo bias in particular can hinder de-risking decisions.

In Sight – August
Our quarterly summary of pensions issues includes the Pensions Regulator’s consultation on the future of trusteeship and governance, along with further changes to investment duties for trustees. It also covers updates on funding, transfer developments and a round-up of other news.

Using behavioural insights to navigate through pension risk settlement
Our new step-by-step guide will help schemes navigate the de-risking market, exploring trustees’ understanding and views on longevity risk, examining the options available to reduce that risk and identifying behavioural biases that could impact these decisions.

Getting stuck in the status quo
Mike Edwards reveals how status quo bias may be preventing schemes from reducing their longevity risk in this article, first published in Pensions Age.

Risk settlement annual review
Read Aon's detailed annual review of the risk settlement market, looking at the latest activity in bulk annuities, longevity swaps and other pension risk transfer options.

Guide to Member Options
In chapter two of our guide, we address bulk exercises, focusing on IFA support and the implications of GMP equalisation.

Master trust consolidation – implications for employers and members
A robust authorisation and supervision regime has been introduced for master trusts that is intended to enhance member protection. As a result, we expect to see an increase in consolidation among existing master trusts. In this article, first published in Employee Benefits, Tony Pugh explores the implications for employers and members.

Who wants an Apple the size of Australia?
The popularity of passive investment has grown in light of strong equity returns in recent years. But there are likely to be headwinds ahead for global markets; these could be the start of a sustained period of volatility from which passive investors have no place to hide. Our paper explores alternative approaches.

Global Pension Risk Survey 2019: how are schemes managing their maturity?
DB schemes are maturing rapidly, with shorter deadlines bringing decisions about both scheme assets and liabilities into sharp focus. How are schemes tackling this? The UK results of our 2019 survey will be available next month – sign up to read findings and insights.

Retirement podcast: a focus on long-term funding targets
Key pension news from the last month. This month’s focus is on long-term funding targets, for which Victoria Panormo is joined by Lynda Whitney. Lynda explains some of the key issues and considers how in practice schemes are implementing this guidance from the Pensions Regulator.

Risk Settlement Bulletin – July 2019
In this month’s Bulletin, we look at some of the issues to consider when insuring pension increases, and how Pension Increase Exchanges (PIE) can help. We explore GMP conversion as an approach to GMP equalisation, and share the latest bulk annuity cost data.

Week in Markets
A summary of market movements over the past week.

Aon in the press
This month, Schneider Electric chooses Aon for fiduciary management and our paper reviews the new opportunities for pension scheme consolidation. We say that the McCloud judgment could be costly for public sector outsourcing contractors and Geri McMahon is named ‘Most Inspiring Returner' by Professional Pensions’ Women in Pensions Awards.