Turner Report: Pensions risk

clock

Today's report into pensions has found there are four main areas of risk to savers linked to investment returns, longevity, defaults and political changes, and earnings progression.

Investment return risk is affected by what type of scheme is offered. A DB scheme will place the burden on the scheme provider, a DC scheme will place the risk on the individual, although the post-retirement risk is absorbed by the annuity provider, the report stresses. Longevity is a risk because nobody know exactly how long they will live in retirement. Again, however, this risk is not borne by the individual, but by the DB scheme provider, the annuity provider, or the government. One problem with the status quo, however, is that insurers are not sure how much risk they can absorb l...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Tyndall Partnerships head Sullivan on bespoke empowerment

Tyndall Partnerships head Sullivan on bespoke empowerment

‘No two IFAs invest in the same suite of models’

Isabel Baxter
clock 09 December 2024 • 4 min read
Smoothed funds set to be a 'bigger asset class for the advice market'

Smoothed funds set to be a 'bigger asset class for the advice market'

‘An attractive low-risk solution for retirees’

Isabel Baxter
clock 25 November 2024 • 3 min read
Advisers no longer see inflation as a major concern

Advisers no longer see inflation as a major concern

Funds offering a level of inflation protection were the last research, Square Mile finds

Isabel Baxter
clock 22 October 2024 • 4 min read