Archive for April 2017

Richard Smith

Yes, it’s that time of year again. The start of a new quarter and, once again, the pace of change in the pensions world continues unabated. Your team at Spence has pored over the various legislative changes, reviewed in detail the consultations and kept their fingers on the pulse of current issues in order to bring you a condensed summary of the highlights from the first three months of 2017.

As such, you can see at a glance the key issues you need to be aware of from the last quarter, and we’ve even put together a handy summary of what topics and dates to keep a look out for in the next quarter.

Topics covered in this quarter’s update include:

  • News from the PPF;
  • Consultation on the future of defined benefit pensions;
  • Highlights from the investment markets;
  • The ever-increasing value of scheme liabilities;
  • with many other highlights besides.

So what are you waiting for?… Click here to download your copy of the Spence Quarterly Update!

Hugh Nolan

Spence & Partners, the UK actuaries and consultants, has moved their Manchester office due to expansion.  The company opened their Manchester office in 2015, with Chris Roberts relocating to develop the presence.  This year, the team is growing to three front-line consultants and has moved to larger premises, remaining in the same street just across the road, at 82 King Street.

Hugh Nolan, Director at Spence commented: “We have seen an increased interest in our services across the North of England since setting up our Manchester office in 2015 and we have had to expand in response to this extra demand.  I look forward to welcoming our new team members as we continue to grow our business in the area.”

Hugh Nolan

With ever more people falling into the “Just About Managing” category as inflation increases faster than many pay packets, pension saving is likely to feel the pinch. Employees and employers both need clear and simple guidance on the choices to get the best outcomes.

In the infamous Jam Experiment (the psychological study rather than the jazz quintet of the same name), ten times as many customers bought some jam when offered a choice of six flavours rather than 24. Similarly, sales of Head & Shoulders went up 10% when the brand range reduced from 26 to 15 varieties. What on earth was Mr Heinz thinking when he decided to advertise a whopping 57 varieties? He could have taken over the whole world if he’d stuck to plain old baked beans in tomato sauce!

One of the authors of the Jam Experiment (lyengar) turned her hand to pensions later, finding that US plans offering just two investment options had a 75% take up rate – falling to 61% where they had 59 choices, which is even more than Mr Heinz. Back in 1999, Baber and Odean found that the least active traders got an 18.5% return compared to 11.4% for the most active traders. The average investor who switched stocks lost out by 3% over the following 12 months. Nowadays few people would object to a return of 11.4% but we’d all definitely want to get a little bit extra if it’s available given the current low expectations of future returns. Read more »

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