Perspectives

I believe we are about to witness the sun rising on a new dawn in pension #investment. A dawn that heralds a more balanced approach, ensuring members' current and future needs while generating surplus responsibly and sustainably. A surplus that isn’t just a buffer but can fund discretionary increases, boost #definedcontribution pensions, and support #productivefinance and #esg goals.

The industry has lost sight of both the wood and the trees in its myopic obsession with short-term valuation cycles. For too long, #investmentstrategy has been to solve actuarial and accounting paper exercises, and along the way, we forgot that pensions are fundamentally long-term economic undertakings. Consequently we should be embracing a range of solutions and approaches to solving the economics over the valuation basis.

Too late, we saw the systemic risk to the industry and government finances, that built from a one-size-fits-all approach in last Autumns #ldi and #giltscrisis.

I'm not saying we need a wholesale change, the traditional approach remains appropriate for schemes looking to #buyout, but TAS300 has reminded us that it is not the only option.

The government, better late than never, is now paying attention. The Chancellor, Pensions Minister, City Minister and regulator are aligning efforts to deliver #mansionhouse.

Pensions, often seen as burdens on businesses, can be run as powerful economic assets benefiting all stakeholders. Let’s use the huge resources of UK pensions to their full potential, contributing positively to UK plc and our shared society."

Bin Amolfi was not wrong in his comment that there really is no point in having the safest graveyard.

We don't need to wait. The tools we need are available today. The time to shift the narrative is now.