Since April 2015 individuals have had greater flexibility in how they can access their pension benefits, for example they are no longer required to take an annuity and can now access their benefits as cash or transfer them to a drawdown arrangement. This change offers individuals much more choice and flexibility. A good thing – but are people aware of how to use these new freedoms and confident in doing so?
How many people have the knowledge and time to manage the financial risks they face in life? To what extent does it matter? The David Hume Institute partnered with the ÐßÐßÊÓƵ (IFoA) and the IFoA Scottish Board to explore these questions.
With increasing urbanisation as well as the urgent need to address and adapt to climate change, the need for sustainable infrastructure is undeniable. It is estimated that the world will need $90 trillion to finance the development of sustainable infrastructure by 2030. This is far beyond the capacity of government and development finance institutions alone and requires considerable mobilisation of private capital. But private capital does not have the same investment horizon or risk appetite.
The IFoA published its latest thematic review report, Equity release: actuaries working in propositions and pricing, on 7 December 2022.
Climate change is a major challenge for society, with the potential to affect all pension schemes in multiple ways. When advising clients, legislation, regulation and other market pressures increasingly require climate change to be considered. But while ESG is a familiar consideration in the investment area, pension scheme actuaries may be less familiar with thinking about climate change when speaking to trustees and employers.