Financial literacy won´t cure shortcomings in DC investments

  For many the solution to (defined contribution pensions) s increasing the financial literacy of the population. Better decisions and choices, and with that superior outcomes for retail investors is held as the prospective result. George Osborne’s advice or guidance is a prime and current example here. There […]

Kollektiv premiebestämd pension

There is growing support for “going Dutch” with pensions. So for those new to this debate this post asks “what are CDC pensions and why are they a good thing?” The UK mainly has two types of pension. Once most people were in defined benefit (DB) pensions. This […]

Jakten på avkastning

“Search for yield” behaviour In a low yield environment insurers may be tempted to engage in more risky activities or follow a more aggressive investment strategy by shifting a considerable part of their investment portfolio to more risky assets. This conduct is usually known as “search for yield” […]

Det huvudsakliga hotet mot pensionerna

The effects of low interest rates can be broken down into three elements: cashflow effects, reinvestment effects and effects on the valuation of assets and liabilities. Cashflow effects stem from yield spread compression, as new premiums and maturing investment returns are reinvested at lower yields relative to the […]

Intresset ljuger aldrig

Svensk Försäkring har haft svårt med ersättningsfrågan. För inte så länge sedan rekommenderade man medlemmarna att ensidigt införa ersättningsförbud för sakförmedling – ett initiativ av Sampogruppen, som med oro såg att mindre eller utländska aktörer genom fristående förmedling kunde hota etablerade bestånd hos dominerande aktörer. Nu både vidgar […]

Exempel på effekterna av avgifter för pensionens storlek

A pensioner has just retired, aged 65, with an index linked annuity from a personal pension of £10,000. If they also receive a typical state pension of £7,500 and have a tax allowance of £10,500 then they will be paying (10000+7500 – 10500) * 20% = £1,400 per […]