Tag: retirement

MPs call for new regulatory approach to secure thriving future for defined benefit pension schemes

Changes to proposed regulation and improvements in governance standards are urgently needed to ensure private sector defined benefit (DB) pension schemes remain an active and thriving part of the pensions landscape and work in the best interest of scheme members, MPs say today.

The Work and Pensions Committee report concludes that despite a steady decline in number in recent years, DB pension schemes are still of critical importance to both savers and the UK economy.

It warns however that two decades of regulatory and policy caution from DWP and The Pensions Regulator (TPR) have led to a low-risk approach to investment that threatens to inadvertently finish off the few remaining DB schemes still open to new members.

With an improvement in funding levels over the past decade presenting new challenges and opportunities for schemes, the report calls for a fresh approach both to funding regulation and the treatment of surpluses in pension and compensation schemes.

Among recommendations on the latter, the report calls for DWP and TPR to look at ways of ensuring the reasonable expectations of scheme members for benefit enhancement are met where there has been a history of discretionary increases.

On the new funding regime proposed by the Government to come into force in September, the Committee’s inquiry heard concerns that open schemes would be forced to de-risk unnecessarily, potentially leading to premature closure.

The Committee calls for the Government to address such concerns in the final version of the Funding Code and for TPR’s objective to protect the Pension Protection Fund to be replaced with a new duty to protect future, as well as past, service benefits.

PPF reserves now stand at £12 billion and the report calls for legislation to allow the levy to be reduced to zero and for compensation levels to be improved.

To encourage better governance, the Committee welcomes the introduction of a trustee register to improve TPR oversight. The report notes TPR’s view that consolidation, including through pension Superfunds, is one of the main ways to improve governance, and calls for the required legislation as soon as possible.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Defined benefit pension schemes are hugely important to savers planning for a comfortable retirement and for the UK economy.

“The improvement in scheme funding levels presents opportunities for both to benefit, but a new approach to regulation and governance is needed to protect the best interest of scheme members and allow still open schemes to thrive.

“The flexibility afforded by the much-improved financial position of the PPF, which we applaud, gives the Government an opportunity to ensure open schemes are not hindered by overly cautious restrictions imposed by regulations.

“While many trustee boards operate to high standards, new standards for trustees can foster confidence that this is the case across DB schemes.”

The report follows up on some of the points raised during the Committee’s previous inquiry into DB pensions with Liability Driven Investments, which examined the events of autumn 2022. The Committee heard that a repeat of the events was now unlikely given the steps taken to improve resilience.

A full list of the Committee’s conclusions and recommendations is available on Pp 54–58 of the report.

Edinburgh Police: Divisional Commander Sean Scott retires

Chief Superintendent Sean Scott will officially retire today (Friday, 26 January), bringing an end to an illustrious 33-year policing career, the last five of which have been served as Divisional Commander for the City of Edinburgh.

Sean began with Lothian and Borders Police in 1990 at the West End and would serve a large part of his career as a detective, both within CID and Public Protection.

When Police Scotland was formed he played a significant role in the development of the Specialist Crime Division, which includes the Major Investigation Team and Organised Crime and Counter Terrorism Units.

Appointed as Divisional Commander for Edinburgh in 2019, Chief Superintendent Scott has overseen a number of major events within the Capital, including the annual International Festival and Fringe, festive policing operations and the Hogmanay Street Party.

In addition, he led on Edinburgh’s response to Operation Unicorn, the death of Her Late Majesty, Queen Elizabeth II and the subsequent repatriation of her body to London.

A/Chief Superintendent Emma Croft will take over as Divisional Commander for Edinburgh and begins her new role on Monday, 29 January.

Emma, who has 23 years policing service joins from Operational Support Division, where she most recently served as Silver Commander for the Capital’s Hogmanay Street Party.

Prior to her time in OSD, A/CS Croft worked within a number of uniformed roles in the city, having joined Lothian and Borders Police in 2000.

A/Chief Superintendent Croft said: “It is a real privilege for me to take over as Divisional Commander for Edinburgh, a city that I call home and have spent the bulk of my policing career working in.

“My predecessor, Chief Superintendent Sean Scott, did a terrific job of developing and enhancing the work we do with key partners to best serve the city and to ensure we provide the highest quality of policing to our communities, despite sustained challenges.

“My intention is to ensure we continue to meet the needs of the public and to work alongside all relevant agencies to deliver the most appropriate response whenever it is required.

“’l will shortly start meeting with many officers and staff from across Edinburgh Division and can’t wait to get their input and feedback on what we can do to keep Edinburgh one of the safest places in the UK to live, work and visit.”

Edinburgh Leisure seeks new Chief Executive

Edinburgh Leisure, the largest provider of sport and leisure facilities across the city, has begun the search for a new Chief Executive Officer (CEO), following the announcement of the retirement of their current CEO, June Peebles (who was part of the original team that helped establish Edinburgh Leisure in 1998).

June led the organisation through the unprecedented period of the COVID-19 pandemic, the various lockdowns and venue closures, leading with unflappability and transparency.

Although venues were closed, some projects were fast-tracked including staffing reviews, and building projects continued where possible, including retiling the Royal Commonwealth diving pool, upgrading the front façade at Portobello Swim Centre and the refurbishment of Warrender Swim Centre (one of Edinburgh Leisure’s five much-loved Victorian pools). 

June Peebles, Edinburgh Leisure’s current CEO said: “I reached the conclusion that, for me, there is no ‘right’ time to leave Edinburgh Leisure.

“I love my work, irrespective of how challenging or less challenging things are, and hardly a day goes by when I don’t experience a proud moment, whether that’s because of the performance of a colleague or from seeing and/ or hearing about the impact of our work on people’s lives. I feel very fortunate to work in an industry and for an organisation I feel passionate about. But there comes a time…and after 38 years, now feels like the right time to retire.

“I leave whoever picks up the baton with an organisation that is mature and certain of its purpose, the value it brings to the city of Edinburgh and, importantly, with the ambition to do more.  This is a great opportunity for someone to put their own stamp on how Edinburgh Leisure continues to thrive.

June Pebbles Chief Executive Edinburgh Leisure

June continues:  “A charity with one clear purpose – to make a positive difference by creating opportunities for everyone to get active, stay active and achieve more, the new CEO will be required to ensure that Edinburgh Leisure continues to deliver on its purpose in a sustainable way.

“Leading an experienced, enthusiastic and committed team – all of whom are focused on making a positive difference through physical activity, working effectively with our  many partners (especially the elected members and officials at the City of Edinburgh Council), and providing all our customers with a great experience.”

Eden Scott is handling the recruitment and interested applicants should contact Sarah Gracie, Associate Director on 07999 421 314

UK Thoroughbred census launched

  • Britain’s first ever thoroughbred census launched to help improve traceability of former racehorses after they retire from the sport 
  • Census to be carried out by equine research experts at Hartpury University
  • All owners of former racehorses will be encouraged to complete and submit the census between 28 June – 31 December 2023
  • Data will help build a wealth of intelligence on the lives former racehorses go on to lead
  • Census will help fill an identified gap in data due to low levels of equine identification document (passport) updates being undertaken once thoroughbreds go into private ownership 
  • Initiative part of British Racing’s Horse Welfare Board’s five-year welfare strategy ‘A Life Well Lived’ and its commitment to improve traceability for all horses bred for racing
  • Equestrian communities to be asked to share the census far and wide to encourage participation  
  • The census can be completed online HERE

British Racing’s Horse Welfare Board is launching the first ever thoroughbred census in Great Britain, in collaboration with research experts at Hartpury University.

All owners of former racehorses are being asked to submit a completed census between 28 June – 31 December 2023. The census will help build an improved thoroughbred data bank about former racehorses and the lives they go on to lead.

The project’s primary objective is to help improve traceability of thoroughbreds after they have been retired from racing.

With improved data, British Racing and its aftercare charity, Retraining of Racehorses (RoR), can better support owners with access to educational resources and routes to compete if desired, as well as continue to build informed and helpful communities.

Improved data at this stage of a thoroughbred’s life can also help the Horse Welfare Board and RoR improve and adapt welfare initiatives and will, most importantly, enable fast and effective contact in the event of an equine disease outbreak.

The census will request information on each horse’s equine identification document (passport) number, microchip number, age, current residence, second career, and more to provide a robust view of the 2023 British retired racehorse population.

The six-month census has been launched in partnership with Retraining of Racehorses (RoR), British Racing’s official aftercare charity, funded by the Racing Foundation, and is supported by World Horse Welfare and Weatherbys General Stud Book.

Helena Flynn, Programme Director, Horse Welfare Board, said: “Improving the traceability of thoroughbreds after they retire from racing is a fundamental part of the Horse Welfare Board’s five-year welfare strategy. The launch of this census is a significant project to help increase the depth, quality, and volume of data about thoroughbreds at this important stage of their lives.

“Just as importantly, this campaign will help us talk about responsible ownership and the critical part every thoroughbred owner plays in ensuring their equine identification document (passport) is up to date. We are delighted to be working with Hartpury University on the census and hope that between us we can encourage as many owners as possible to participate.” 

Jane Williams, Head of Research at Hartpury University, added: “We’re delighted to be part of this proactive initiative as Hartpury is committed to supporting the equine sector to improve the quality of life of the horses’ we all love.

“The census will present an opportunity to understand more about the lifetime care of thoroughbreds, generate evidence to safeguard against future disease outbreaks, and showcase the huge benefits thoroughbreds bring to so many people.”

The primary source of traceability for all horses in Great Britain is the equine identification document (passport), which new owners of any horse are required to update within 30 days of new ownership.

During their racing careers this information is meticulously maintained with the Weatherbys General Stud Book via breeders, owners, and trainers. However, data for former racehorses reduces significantly when they go into private ownership after their first step out of racing, with general equine identification document (passport) compliance at an average of 20% across the equestrian world. 

The reasons for this are presumed to be a lack of understanding of the importance of this step, confusion on costs, the desire to hold on to the document after a horse has died and general apathy to engage in the process.

As a result, an additional objective of the census will be to communicate to private owners and encourage them to take action, to check their horse’s equine identification document (passport) and if needed, to get it updated.  At the same time, owners of horses who were registered with a licenced British trainer in their past will be encouraged to register their horse for free with Retraining of Racehorses (RoR). 

David Catlow, Managing Director, Retraining of Racehorses, added: “We are pleased to be teaming up with the Horse Welfare Board and Hartpury University to encourage owners of former racehorses to participate in the census survey. 

“The ‘social licence’ for the use of horses in sport is under increasing scrutiny and what happens to former racehorses after they retire from racing is identified as a particular concern. This is a significant step towards ensuring thoroughbreds enjoy a healthy and caring existence during their lifetimes and will provide the racing industry with the relevant data to guide future decisions”.

RoR is a thriving community which provides thoroughbred owners with access to education, advice, and an established series of events to support the ongoing healthy, happy lives of former racehorses. By registering horses with RoR’s free membership option, owners can help racing ensure future traceability through its annual check on their horse’s status.

Roly Owers OBE, CEO, World Horse Welfare, said: “This is an excellent initiative along the road of improving the traceability for all thoroughbreds.

“Full traceability lasts a lifetime as a horse bred for racing will always be a racehorse in the eyes of the public, and they rightly hold the industry responsible for them throughout their lives.  There really is a collective responsibility to make this work towards the much needed goal of full traceability, both for the sake of the horses and the reputation of the industry.”

The 2023 Thoroughbred Census can be completed online HERE , as well as at key equine events throughout the rest of the year, before closing on 31 December 2023.

Completion of the census is not compulsory, but owners are strongly encouraged to join the community and participate. Full results will be reported during the first quarter of 2024.

Tributes to Sir Iain Livingstone on his retirement from policing

First Minister Humza Yousaf has led tributes to Sir Iain Livingstone QPM who yesterday (August 10) retired from policing after 31 years, including six as Scotland’s Chief Constable.

Sir Iain, who was appointed Chief Constable in August 2018 and served as Interim Chief from September 2017, announced his decision to retire from policing in February.

Having brought stability to Police Scotland, the 56-year-old led the organisation through the delivery of major events and challenges including the Covid pandemic, the policing of COP26, and the death of Her Majesty Queen Elizabeth.

Under his command, Police Scotland has delivered a world-leading homicide detection rate, clearly established a commitment to tackling violence against women and girls, and championed inclusion.

First Minister Humza Yousaf said: “I would like to thank Sir Iain Livingstone for his outstanding leadership of Police Scotland over the past six years.

“During his time in charge, policing of the COVID pandemic, COP26 and the funeral of Her Majesty Queen Elizabeth II showcased all that is best about the qualities and traditions of Scottish policing.

“He has also shown courage and commitment in challenging the institutional and structural barriers that exist within Police Scotland. After 31 years of public service, I wish him well on his retirement.”

Martyn Evans, Chair of the Authority, said: “Sir Iain Livingstone has been integral to delivering the vision of a single national police service and transforming policing over the last decade. In doing so, he has shown great imagination, courage and created much needed stability.

“He has led Police Scotland with dignity, grace and distinction through significant major events and challenges. The Authority is immensely grateful for his contribution and leadership and we wish him well for this next chapter.”

Members of the force executive, probationary constables, and other colleagues, serving and retired, wished him well as he left Police Scotland Headquarters, Tulliallan.

Sir Iain said: “Leading our officers and staff as Scotland’s chief constable to keep the public safe has been the privilege of my professional life.

“I thank and pay tribute to all my colleagues for their dedication and professionalism and to my family for their love and support.

“With the strong and experienced leadership team in place and under the command of new Chief Constable Jo Farrell, I know Police Scotland will continue to deliver ethical and effective policing for our fellow citizens.”

Chief Constable Farrell will take up post on 9 October with Deputy Chief Constable Designate Fiona Taylor QPM taking on the responsibilities of Chief Constable in the interim period.

DCC Taylor said: “On behalf of our officers and staff I thank and pay tribute to Sir Iain for his outstanding public service and inspirational leadership. We wish him and his family the very best.”

A summary of Sir Iain’s career is available on the Police Scotland website here.

Living Wages towards Living Pensions

News from THE POVERTY ALLIANCE

Our Living Wage Scotland team has had great success in encouraging 3,000 businesses in Scotland to become accredited Living Wage employers. Now the Living Wage Foundation is moving into a new area. 

The Living Pension accreditation scheme was launched in Edinburgh on 21 March 2023. It is a voluntary savings target for employers and aims to help workers build up a pension pot that will provide enough income to meet basic everyday needs in retirement.

Research completed by the Resolution Foundation in 2022 showed that four in five workers, and 95% of low-paid workers, paying into defined contribution schemes are not saving at the level needed to reach an acceptable standard of living in retirement.

You can read more about Living Pensions here, and you can also sign up to a free webinar being hosted by the Living Wage Foundation on Tuesday 16 May 2023.

Over a quarter of women have no pension savings

  • Male pension pots are two thirds larger than women’s on average
  • Only 23% of women are confident they will be able to retire comfortably

Fewer women than men have pensions, and those who do are saving less than their male counterparts, reveals independent research conducted on behalf of Handelsbanken Wealth & Asset Management. 

Handelsbanken Wealth & Asset Management’s report, Can we solve the gender wealth gap? highlights the disparity in retirement savings between men and women, revealing that over a fifth (26%) of women have no formal pension savings at all, compared to just 16% of men.

Women’s pension pots were found to be substantially smaller too. The average pension across amounts for all respondents stood at £103,037. However, male respondents’ pension pots were found to be significantly higher, averaging at £142,234, while women’s came in at just over a third of this, at an average of £51,384.

It is therefore unsurprising that only 23% of women surveyed stated they are confident that they will be able to retire comfortably, with over a third (35%) believing they won’t be able to.

However, there are signs that things could be turning around for the next generation. While women over the age of 40 are generally less likely to have a pension than men of a similar age (63% vs 80%), men and women in their 30s were found to be equally likely to have a pension (77%). For adults under 30, women were found to be more likely to have a pension than men (76% vs 59%).

The research also revealed that most people tend to leave the management of their pension to their workplace pension provider (45%). Men were slightly more likely than women (43% versus 37%) to manage their own pensions, such as via a self-invested personal pension scheme (SIPP).

However, more than half (56%) of those who self-manage their pensions admitted that they seldom check their retirement savings – of which 64% were female.

Christine Ross, Head of Private Office (North) & Client Director at Handelsbanken Wealth & Asset Management, said: “Women on average continue to remain a long way behind men in pension savings, with the problem at its most acute among older generations who are closer to retirement.

After decades of gender disparity, it’s encouraging to finally see clear evidence of change, with pension take up reaching parity among thirtysomethings, and women in their twenties ahead of their male counterparts.

The recent steps taken at a government level have the potential to further close the gender pensions gap, including the free childcare scheme expansion announced at the Spring Budget, which should allow more working mothers to return to the workplace and build their pension savings.

“But despite signs of progress, there is still considerable work to be done. Education around pensions needs to be improved, as does women’s confidence in financial products. We strongly encourage seeking advice on long-term financial planning where possible, to ensure that the plans you have in place are fit for purpose on an ongoing basis.

“Generally, it is important to review your pension regularly and to top up your workplace pensions where possible. If you’re unable to pay into a formal pension, there are plenty of other options to consider, including ISAs, which offer tax-free savings.”

North Edinburgh bids farewell to Drylaw’s Inspector Jonny Elliott

Police colleagues waved off Inspector Jonny Elliott yesterday after 29 years service – over 20 of which were spent in Drylaw!

Colleagues said: “His work in the local community is unparalleled and he will be greatly missed by all the officers and staff in Edinburgh Division. All the best with the retirement, Boss!”

Thanks for everything, Miss Stewart!

Craigroyston Primary School Head Teacher says goodbye

‘How lucky I am having something that makes saying goodbye so hard’ – Winnie the Pooh

“I leave today with a heart full of love for my school and a community I am proud to have served for over thirty years’ – Craigroyston Head Teacher Lorna Stewart

The secret to a happy retirement? £26,000 per year, says Which?

Two-person households need an average annual income of £26,000 for a comfortable retirement, Which?’s latest research has found. 

With the past year altering many people’s spending habits or potentially accelerating their plans for retirement, finding out how much money is needed to finance a reasonable standard of living in later life has taken on an increased importance. 

Which? surveyed nearly 7,000 retirees in February about their spending to develop retirement income targets for one-person and two-person households. The findings can be used as a guide to how much people are likely to spend and how much they might need to save, factoring in the state pension and tax bills. 

The consumer champion split the income targets into three different categories – essential, comfortable and luxury – to reflect the budgeting needs of different savers. 

  • Essential: food and drink (excluding meals out), housing payments (mortgage, rent or council tax), transport, utility bills, insurance, household goods, clothes, shoes and health products. 
  • Comfortable: includes the essentials, as well as regular short-haul holidays, recreation and leisure, tobacco, alcohol and charity giving.
  • Luxury: includes both ‘essential’ and ‘comfortable’ spending categories, as well as extended or long-haul holidays, health club memberships, expensive meals out, and a new car every five years.

Which?’s research showed that retired couples spend an average of £18,000 a year on essentials. This goes up to £26,000 when including spending on categories in our ‘comfortable’ retirement bracket, and £41,000 to include the extras for a ‘luxury’ lifestyle. For single-person households these figures were £13,000, £19,000 and £31,000, respectively.

Many of the survey respondents in two-person households had spent less on things like recreation and leisure (down by 14 per cent) and transport (down by 10 per cent) this year than they had compared to before the pandemic in 2019. Spending on cars, charitable donations and groceries had risen by six per cent. 

For single-person households, spending on long-haul holidays and leisure memberships was down by 14 per cent and 9 per cent, respectively. 

Which?’s calculations found that, on average, couples need a pot of around £155,000 alongside their state pension to produce the annual income for a comfortable retirement of £26,000 via pension drawdown – or just over £265,000 through a joint life annuity. 

For single-person households, achieving a comfortable retirement would mean a pot of around £192,290 alongside a state pension to get to an annual income of £19,000 via pension drawdown, or £305,710 through an annuity. 

The consumer champion is calling on the government to press ahead with reforms to help provide savers with greater clarity about their pension savings so they can know if they are on track for later life. The government must move swiftly to set out the mandatory timetable for pension schemes to provide information to pension dashboards that give savers access to all their pensions information – including their state pension – in one place. 

Which? believes that the Department for Work and Pensions should also move forward with plans to shorten and simplify annual benefits statements, and it should ensure consumers are provided with clear information about costs and charges in one simple, personalised figure.

Jenny Ross, Which? Money Editor, said: “For many people, the events of the past year will have caused them to rethink their retirement plans and  brought the amount of money needed for later life into sharper focus.

“Our research shows that most people will need to be putting away significant sums if they want to ensure they can enjoy a comfortable retirement – but many do not have access to the clear and accessible information they need to help them plan.

“The government must move swiftly to introduce the pensions dashboard and simplify annual benefits statements to enable people to understand how much they’ve saved, what this could be worth in retirement and, crucially, extend its proposals to include how much savers have paid in charges.”