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NEW DB FUNDING CODE MOVES AWAY FROM RECKLESS CONSERVATISM. Big improvement on previous proposals which would have driven most schemes into supposedly low-risk bonds, while giving up on long-term investment returns. Regulations are published at last after six years but new Regulatory Guidance is still not ready – schemes need it urgently to prepare ahead of September 2024 start. The new code may help some scheme trustees back more productive finance but the delays have meant fewer schemes will do…

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Some good news for pensioners but plenty more needed to ensure pension assets do more to boost British growth. State Pension Triple-Lock: Very good news that the uncertainty for pensioners is over. The Chancellor has confirmed the full 8.5% ‘triple lock’ earnings uprating promise for next year’s State Pension. It would have been very wrong to remove pensioner protection again, after breaking that Manifesto Commitment two years ago. Millions of pensioners (especially women) rely on their State Pensions to make…

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Threatening to remove Winter Fuel Payments continues treating pensioners as political footballs and is no way to control public spending. Politicians should agree on a national cross-party review of future State Pensions and other support for older people.   Constant threats to cut parts of pensioner support and focus on more means-testing unsettles millions of pensioners with little or no income other than State Pension and benefits. Tinkering with parts of the system will not address cost control or inter-generational concerns.  …

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Earnings inflation figures released tomorrow likely to indicate 8% rise in State Pension.    This will reflect the need to protect State Pensions, not the triple lock itself.    Chancellor is right to hint that it’s time to review state pension protection – just sticking with current triple lock does not give pensioners the reassurance they need.    Current ‘triple lock’ increases only two bits of State Pensions – but poorest pensioners are excluded and youngest get more protection. Earnings…

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Glad to see the Government committing to protect the State Pension for next year as many pensioners continue to battle cost of living crisis. But the real decision is not about ‘triple lock’ as the 2.5% is irrelevant – it’s a double lock that’s important. It’s important for millions of pensioners especially women relying wholly on State Pensions, to have their meagre State Pension safeguarded. Government is right to commit to protecting pensioners again next year: In the middle of…

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Of course, with an aging population and high inflation, the costs of state pensions will rise, but that should not be a shock!  Of course Britain can afford to pay its State Pensions, this is a political choice of priorities. The UK has one of the lowest State Pensions in the OECD while most EU countries pay far more.  Cost-cutting need not mean attacking the core pension, raising State Pension Age or mass means-testing.  Increasing the number of years for…

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More pensions for low earners and young workers as auto-enrolment extension bill goes through house of lords. The legislation will ensure Government moves auto-enrolment to next stage, improving coverage and adequacy of workplace pensions. This is designed to pave the way for all workers under age 22 to be auto-enrolled and provide much larger pensions for lower earners. On Friday, the Extension of Auto-enrolment (No.2) Bill received its Second Reading in the House of Lords and should become law in…

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Ongoing interest rate rises confirm the value of pension freedoms.  Reforms have saved millions of pensioners from locking into record low annuity rates, without inflation protection or spouse cover.  As QE comes to an end, annuity rates have already increased as inflation and interest rates have risen.  Pension providers have a chance to redesign pensions and move on from one-size-fits-all thinking, with wider investment options and new ways of preserving spending power for later life.    Rising rates and inflation…

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