In the first episode of the fourth series of The Professional Investment podcast, James Monk, workplace director at Fidelity International joins us to discuss how we can address pension inadequacy.
A recent report from Hymans Robertson provided this week’s news story which highlighted the variability in retirement income levels as well as the difficulty for individuals to manage their longevity risk.
The government announced the relaunch of the Pensions Commission this summer to address pension inadequacy but said no changes to contribution levels would be made before the next parliament.
That will put increased pressure on pension providers to maximise investment returns to provide the best possible old age. James and I discuss how default funds should be designed to achieve this outcome.
With the number of people relying on defined contribution pots to provide their retirement income, providers are grappling with the best designs to last the life of a pensioner.
We discuss how default funds need to deal with these different phases, the often contradictory challenges which need to be solved as well as managing the longevity risk highlighted in the Hymans Robertson report.
ABOUT THE GUEST:
James Monk - workplace investment director at Fidelity International
James is a Workplace Investment Director at Fidelity International looking after the FutureWise Target Dated Fund default strategy, its journey to-and-through retirement and manage a few key strategic IO clients since February 2023. He comes with 14 years DC Investment industry experience and is qualified as a Regulated Financial Planner. James’ experience covers investment design, private assets, sustainability, retirement and the workplace provider industry. He is a member of the Investment Association Retirement Income committee and was part of the Bank of England’s Productive Working Finance Group, making retirement and private assets more accessible.
ABOUT THE HOST:
Charlotte Moore is an award-winning journalist and co-founder of Moore Squared Communications. She has spent almost two decades writing about how the UK’s largest investment organisations allocate their capital for a number of different specialist magazines including Professional Pensions, IPE and MandateWire. She started this podcast to increase understanding of how and why the UK’s £3 trillion pensions industry invests its members’ capital to provide the best possible retirement.
🔗 https://lotsmoore.co.uk/
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Chapters
00:00 Introduction to the Professional Investment Podcast
03:00 Political and economic cycle considerations
06:00 Retirement journeys and long-term planning
09:00 Common financial misconceptions
12:00 Shifts in industry practices and structures
15:00 Changing risk environments in investments
18:00 External asset portfolios and diversification
21:00 AI in financial services and new tools
24:00 Fund supermarkets and origination models
27:00 Effective wealth management approaches
30:00 Measuring success and closing thoughts