CDCs will be a culture shock to UK pension choice

2014 was already shaping up to be a pivotal year in pension reform, but with an election fast approaching, the Pensions Minister Steve Webb, is showing no sign of slowing down the pace of change. The Queen’s Speech contained a proposal to enable UK employers, from 2016, to set up new Collective Defined Contribution (CDC) schemes for their employees. The Private Pensions Bill will introduce a new pension legislative framework later this year. This will set out the definitions for three different categories of ‘pension promise’ schemes for individuals in the savings phase. A scheme will be either Defined Contribution (DC), Defined Benefit (DB) or, the new ‘middle way’, Defined Ambition (DA).

Under the Radar? Insurance & Inflation Risk

Inflation risk exists across virtually all insurance companies’ balance sheets (both for life and non-life providers), as almost all assets are affected directly or indirectly by inflation expectations. Likewise, many insurance liabilities have a direct or indirect inflation link, be it for future administrative expenses or for claims (e.g., payment protection orders, life annuities, medical or legal claims). More importantly, unlike many other market risks insurance companies face, an increase in inflation expectations may cause both sides of the balance sheet to suffer. For example, high inflation may cause asset values to drop while causing liability values to rise.

Actuaries will be central to insurers’ preparations for SII

January 2016 marks the introduction of Solvency II, the new European wide methodology which will be used to maintain a safe and robust insurance industry capable of meeting its obligations to policyholders. With this new regime being introduced in just 17 months’ time, insurers haven’t got long to finalise their preparations.

3 Retiree Pitfalls In a Still-Lofty Market

Latest World News

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Lifestyle Actuary

The trappings of fast paced city lifestyles rarely take into account the charm and elegance that a room, a dinner or a cup of tea can afford; characteristics lost to a by-gone era of debutante balls and black tie for dinner.

The Luddite

Sam Richardson looks into the up and coming and the outgoing of the technology and gadgetry world in 2014.

Travelling Actuary

This month travelling Actuary Eve Hartridge gives us the lowdown on what is unmissable in Melbourne. Follow Eve on Twitter @allaboutevie

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