In this week’s episode of The Professional Investment Podcast, Calum Cooper, head of pensions policy innovation at Hymans Robertson, joins the show.
We discuss Professional Pensions story that The Pensions Regulator is conducting its latest five-year review of its corporate strategy.
The regulator said its mission is to protect workplace pensions members’ money, enhance the pensions system and support innovation in members’ interests. The consultation lasts until 8 June.
Calum said this represents a change in strategy away from a regulator concerned with the health of individual schemes and more towards a prudential authority.
This reflects the strong funding levels in the industry allowing for this different focus.
The TPR’s strategic shift raises the question of how it will interact with the Financial Conduct Authority in the future. Many in the pensions industry would prefer to only work with one regulator.
We discuss whether the introduction of retirement income will lead to a focus on longevity as a potential asset class as pension providers look to collectivise this risk for members.
Calum discusses the different ways this risk can be managed including annuities.
We also discuss another news story questioning how the Pension Protection Fund should be treating its reserves, which are currently £14bn.
Calum outlines what options could be explored to expand the investment options while also ensuring the PPF continues in its lifeboat role.
Finally, we ponder whether bigger is always better in investment and how £100bn pension schemes can still invest in innovative asset classes.
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