The morning briefing: lost retirement pots and advice vs advice

Hello and welcome to your Morning Briefing on Thursday, October 27, 2022. To receive it each morning in your inbox, click here.


Value of lost retirement pots

The value of lost pension pots has risen by £7billion in four years.

This means the total value of lost retirement pots has reached £26.6billion, with three million pots currently unmatched to their owner.

This is according to a study carried out by the Pension Policy Institute (PPI).


Advice vs guidance

Amid the tidal wave of Westminster headlines this month, news from the Financial Conduct Authority caught my eye.

The regulator said it was working with The Investing and Saving Alliance and the Association of British Insurers to try to find examples of areas where the difference in advice and guidance is problematic.

He says the border is an issue that has come up over the years.


quote of the day

The tenth anniversary of auto-enrollment is a good time to evolve eligibility criteria, which means more people could benefit in the future.

Gail Izat, Office Manager at Standard Life, comments on the DWP statistics marking ten years of automatic enrollment.



Stat Attack

According to a study by Canada Life, the United Kingdom’s state pension is divided, with the majority believing that it is not generous enough.

56%

Of the British people believe that the state pension is not generous enough

22%

Said it’s ‘just right’

4%

Saidi is ‘too generous’

76%

Majority of over 55s don’t think that’s generous enough

A third

On the other hand, only a third of 18-34 year olds agree with this statement

A half

35-54 do just as well

61%

of respondents are against the idea of ​​using life expectancy to calculate state pension income

46%

The most popular option among the British public was to allow people to apply for the state pension earlier, with 46% of respondents in favor of this option, even if it meant accepting a reduced rate.

27%

The average state pension test was also unpopular with just 27 per cent voting in favor of the idea

Source: Canada Life

YOU Asset Management has strengthened its investment team with three senior recruitments.

Nick Heath recently joined the team as Client Relationship Manager. Reporting directly to CEO Derrick Dunne, he will be responsible for executing YOU’s business development strategy and identifying opportunities to drive its customer value proposition.

Chris Ayton is also joining the firm as fund manager, reporting to Chief Investment Officer Shane Balkham. Ayton will manage YOU’s range of model portfolios and multi-asset mixed funds alongside Cormac Nevin and Shane Balkham. He will particularly focus on UK, emerging global and European equities, as well as property and real estate assets.

Additionally, Kira Parker is joining as Head of Investment Administration, also reporting to CEO Derrick Dunne. Parker will oversee the day-to-day business requirements of YOU and the company’s investment administration team.


Standard Life, part of the Phoenix Group, has promoted Kunal Sood to managing director of defined benefit solutions and reinsurance. He was previously Head of Reinsurance and Structuring.

Sood will be responsible for driving the growth of Standard Life’s market-leading BPA business.

Justin Grainger has also been promoted, taking up his new role as chief commercial finance officer where he will manage the group’s £46billion annuity book.

He was previously Managing Director of Defined Benefit Solutions.



By the way

Can Gary Gensler solve all the problems in American finance? (The Economist)

Aegon is selling its Dutch operations to ASR in a $4.9 billion deal (Reuters)

Cost of living crisis: Stop the Squeeze calls on the wealthiest to ‘pay their fair share’ of taxes (The Guardian)


Have you seen?

The government has announced that it will delay the budget statement and will now issue a full autumn statement on November 17.

A Posting on Twitter Treasury said it would contain the UK’s medium-term budget plan and the forecast from the Office for Budget Responsibility.

It was originally due to take place on Monday October 31, but Chancellor Jeremy Hunt has confirmed it will be moved.

In an interview with ITV News he said: “My number one priority is economic stability and restoring confidence that the UK is a country that is paying its way.

“For this reason, the medium-term budget plan is extremely important. I want to confirm that it will show that the debt will decrease over the medium term, which is very important for people to understand.

“It is also extremely important that this statement be based on the most accurate economic forecasts and public finance forecasts possible.”