Latest news with #BarnettWaddingham
Daily Mail
6 days ago
- Business
- Daily Mail
State pension age 'could have to hit 80' with warnings cost crisis is even worse than feared - as union threatens to take to streets if retirement handouts are delayed
Brits are facing a stark warning today that the state pension crisis could be even worse than feared. Concerns have been raised that estimates by the Treasury's OBR watchdog might be underplaying the challenges posed by life expectancy improvements. According to analysis by consultancy Barnett Waddingham, a more 'cautious' approach would be to assume the longevity gap closes between the poorer and wealthier ends of society. That suggests spending would be the equivalent of £8billion a year higher by the mid-2070s. Maintaining the cost of the state pension at around the current proportion of GDP would then require withholding the payments until people reach 80, rather than 74 as previously mooted. The grim calculations emerged as a union threatened to take to the streets if the government tries to increase the official retirement age more quickly. The Rail, Maritime and Transport union lashed out after a government review was launched this week - although it is not expected to report until the end of the decade. Speculation is mounting about the sustainability of the pensions triple lock, which means the state's old-age payouts rise by whichever is highest out of rates of inflation, earnings or 2.5 per cent every year. A government review published in 2023 indicated that if life expectancy returned to the trajectory expected in 2014 the state pension age could be 71 by the late 2050s The OBR warned earlier this month that the policy could cost three times as much as originally expected by the end of the decade, as the ageing population piles further pressure on public finances. The pension age is already slated to rise to 67 between 2026 and 2028. Currently the legal position is that it will reach 68 from 2044-46. But a previous report by former Tesco director Baroness Neville-Rolfe cautioned that might need to be accelerated. With the triple lock in place it has been estimated the level would have to hit 74 by 2065–67 in order to keep spending at around 6 per cent of GDP. But Jack Carmichael, senior consulting actuary at Barnett Waddingham, said there was a 'very real risk' that the situation would be even worse. 'The OBR's 'Fiscal risks and sustainability' report shows the cost of State Pension as a proportion of GDP doubling over the next 50 years, driven by a growing retirement population relative to the working age population,' he said. 'The OBR's modelling uses a high life expectancy scenario, based on the ONS's definition in their population projections, that results in an additional annual State Pension cost of c£2billion in today's terms. 'It assumes a long-term rate of 1.9 per cent, rather than 1.2 per cent. 'In reality, that sensitivity is too cautious and broad-brush, which underplays the degree of longevity risk in the State Pension system. Mr Carmichael suggested it would be more appropriate to assume 'a closing of the life expectancy gap between the individuals with the lowest and highest life expectancy'. 'Not only does this more accurately capture the financial impact of longevity risk in the UK State Pension system, it is also more likely to reflect healthcare spending priorities over the next 50 years if those living the longest at the moment are assumed to have almost reached the life expectancy cap,' he said. 'Under this alternative life expectancy sensitivity, the annual cost of the State Pension would increase by c£8billion - four times higher than the current model predicts. 'To keep the cost of the State Pension at a similar proportion of GDP would then require a massive increase in the State Pension Age, potentially up to the dizzying heights of age 80.' Dr Suzy Morrissey has been commissioned by Work and Pensions Secretary Liz Kendall to look at the 'factors government should consider' on state pension age. And the Government Actuary's Department has been asked to produce a report on the proportion of adult life in retirement. However, it is understood that final decisions are highly unlikely to be taken until the next Parliament, despite concerns about giving people enough time to prepare for changes. RMT general secretary Eddie Dempsey said: 'The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich. 'Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.' He continued: 'Our members work in physically demanding, round-the-clock, safety-critical jobs. 'Many already struggle to reach retirement in good health, especially shift workers. 'Raising the pension age even further isn't just cruel and unnecessary, it's a slap in the face to the very people who keep this country running. 'If this government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action.'
Yahoo
09-04-2025
- Business
- Yahoo
Howden wraps up Barnett Waddingham purchase
Howden has completed the acquisition of Barnett Waddingham, a consultancy based in the UK that offers insurance, risk, pensions and investments services. The financial terms of the deal, first announced last month, have not been revealed. The newly merged company employs 4,000 professionals in the pensions and benefits sector, generating revenues of approximately £500m. 'All of the Barnett Waddingham partners have reinvested into Howden, demonstrating their long-term commitment to the business,' Barnett Waddingham said in its press release. The merged company will deliver a complete range of employee benefits and pensions advisory services to corporate clients across multinational corporations, small and medium-sized enterprises, and both the private and public sectors. Additionally, it will offer health, life and specialised pension products to individuals. Barnett Waddingham senior partner Andrew Vaughan said: "We are delighted to begin our long-term journey with Howden now that the deal is officially complete. This significantly enhances our ability to deliver greater value to clients through expanded capabilities, alongside Howden's impressive global reach and expertise." In February, Howden purchased Forbes Insurance, an aviation specialist, and the book of business from Hill Aviation Insurance Services. The two entities rebranded under Howden, leading to the creation of a new specialist aviation division within Howden UK&I, as well as a new office in Leicester, UK. Recently, Howden launched the Howden Auto Tracker, a new automated follow-form facility that aligns tracker capacity with algorithmic capacity, providing brokers with streamlined access to both from a unified data source. "Howden wraps up Barnett Waddingham purchase " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Howden expands partnership with Cyberwrite for cyber risk insights
Reinsurer Howden has expanded its partnership with Cyberwrite, a provider of cyber risk modelling, across 52 countries and seven languages. The partnership will enhance the ability of Howden's brokers worldwide to assess cyber risks more "effectively". Cyberwrite claims that its advanced cyber risk quantification technology will equip Howden brokers with the tools to provide clients with actionable risk insights and benchmark their cyber exposure against industry peers. This enables businesses of all sizes to better understand their cyber risks and optimise their insurance coverage, the company added. The collaboration aims to tackle the challenges brokers encounter when selling cyber policies, such as client education, policy optimisation and underwriting efficiency. By leveraging Cyberwrite's AI-driven cyber risk reports, powered by its patented 4SEEN technology, the insurer will gain deeper insights into cyber risk, improving confidence in the underwriting process. Cyberwrite CEO and founder Nir Perry said: 'Cyber insurance is becoming an essential part of business resilience, and Howden is leading the charge in delivering smarter cyber risk solutions globally. By equipping Howden brokers with Cyberwrite's patented AI-driven real-time risk reports, we are helping businesses worldwide make informed decisions and secure the coverage they need against growing cyber threats.' According to Howden's 2024 cyber report, the insurance market has seen a 15% reduction in pricing from its 2022 peak. Howden cyber global head Shay Simkin stated: 'By integrating Cyberwrite's reports into our cutting-edge Cyber+ system, we are able to offer the best-of-breed cyber risk reports worldwide in real time to our customer base and beyond. 'We have been using Cyberwrite's technology since 2019, and expanding this relationship allows us to provide more context about risk exposure to companies that don't understand how vulnerable they are.' Additionally, Cyberwrite expanded its risk assessment capabilities to include catastrophe modelling, which supports reinsurance brokers in assessing risk and communicating it to clients. Recently, Howden agreed to acquire Barnett Waddingham, a UK-based consultancy offering insurance, risk, pensions and investment services. "Howden expands partnership with Cyberwrite for cyber risk insights " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
Howden to take over UK insurer Barnett Waddingham
Reinsurer Howden has agreed to acquire Barnett Waddingham, a UK-based consultancy that provides insurance, risk, pensions and investment services. The financial terms of the deal have not been disclosed. The deal is expected to enhance Howden's pension and related advice capabilities. Howden said the deal will boost its global presence, doubling the size of its Employee Benefits business with 4,000 new experts. The combined workforce will deliver an estimated £500m ($644.86m) in global revenue, the company added. With this acquisition, Howden and Barnett Waddingham will collectively provide a full spectrum of employee benefits and pensions advisory services. These services will be available to a client base including multinational corporations, small and medium-sized enterprises, and entities within the private and public sectors. Additionally, individual clients will have access to health, life and specialised pension products. Howden CEO David Howden said: 'In our journey to build a global broker we recognise the need to create a world-class employee benefits business for our clients. 'Under Glenn Thomas' leadership since 2018, our Employee Benefits division has delivered a remarkable 52% compound annual growth rate. Expanding our pensions advisory and administration capability is crucial to our long-term, global growth plans, and Barnett Waddingham provides a fantastic platform to build our capability for clients around the world. 'Critically, Barnett Waddingham's working partners will reinvest significantly into Howden, underlining their commitment to a long-term future with us, and delivering extraordinary alignment for our future ambitions,' he added. Howden UK health & employee benefits CEO and global practice leader Glenn Thomas added: 'Barnett Waddingham's extensive pensions expertise, together with Howden's market leading presence in the health and employee benefits market, creates a full-service proposition and one of the largest pensions and employee benefits consultancies in the UK, with one of the most extensive global footprints in the market.' Barnett Waddingham senior partner Andrew Vaughan stated: "We are really excited to join Howden because of its commitment to the UK market, and its unique culture. Being part of Howden also strengthens our ability to deliver even greater value to our risk, pensions, investment and insurance clients through enhanced solutions, including our tech-enabled capabilities, and access to global expertise. "As we reflect on 35 years of continuous growth and development at Barnett Waddingham, we are proud of the heritage and principles that have made us who we are – people-centricity, partnering with clients and the delivery of high-quality services.' Last month, Howden purchased Forbes Insurance and the business portfolio from Hill Aviation Insurance Services. Both entities have been rebranded as Howden, leading to the creation of a specialist aviation division within Howden UK & Ireland. "Howden to take over UK insurer Barnett Waddingham " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Telegraph
17-02-2025
- Business
- Telegraph
How Rachel Reeves killed the private sector pay rise
Pay growth has flatlined as employers brace for Rachel Reeves's £25bn National Insurance raid, a leading jobs analyst has warned. Figures from Employment Hero show that average pay growth in small and medium businesses collapsed to 0pc in the first three months following the Chancellor's October Budget. The company said that employees were 'feeling the squeeze' as businesses sacrificed pay rises to prepare for Labour's 'jobs tax' from April. Experts have already warned that Ms Reeves's changes have threatened national security, raised council tax and dragged 750,000 workers into National Insurance. Employment Hero analysed real-time data from 90,000 workers in businesses with up to 500 workers. Its data shows that average pay for full time workers jumped by 1.1pc in the three months leading up to October last year. However, this fell to 0pc in the three months to January following the Chancellor's sweeping changes to employer National Insurance contributions in her maiden Budget. In the same period the previous year, average pay grew by 0.8pc. Meanwhile, public sector workers will benefit from an above-inflation pay hike of at least 2.8pc from April after Ms Reeves approved proposals last year. Currently, employers only pay National Insurance contributions when an employee earns more than £9,100, but Ms Reeves has decided this will fall to £5,000 from April 6. The rate payable will also increase from 13.8pc of salaries to 15pc. Kevin Fitzgerald, of Employment Hero, said: 'Small and medium businesses are under increasing pressure as the looming jobs tax forces them to be cautious with wage bills. 'Rather than increasing pay, many are having to set aside funds to cover rising employment costs. While lower interest rates may offer some relief to overall business expenses, they don't necessarily translate to higher wages for staff. 'International research on jobs taxes makes one thing clear – it's workers who ultimately feel the squeeze.' In November, consultants Barnett Waddingham warned that the changes could cost workers up to £2,000 a year in retirement. The following month, a survey carried out by the Bank's Decision Maker Panel showed that more than half of businesses also expected to raise prices and cut jobs. Employment Hero also said that growth in full-time employment had been 'weak' since the Budget. It reported that while January saw a slight seasonal increase of 1.4pc, it followed falls of 1.7pc in November and 0.2pc in December. Jeff Moody, of the British Independent Retailers Association, which represents small firms, said the figures painted a 'concerning picture' for small businesses. He said: 'Stagnant wage growth among firms with fewer than 500 employees, coupled with unstable employment patterns, suggests that the Chancellor's National Insurance changes aren't delivering the boost that was promised. 'While we saw a modest seasonal uplift in employment of 1.4pc, this barely scratches the surface after previous months' losses. 'Our independent retailers are caught in a perfect storm – they want to reward their hard-working staff but are increasingly struggling to do so in the current climate.' A HM Treasury spokesman said: 'For 14 years, politicians accepted a UK economy that failed working people, we won't. That's why at the Budget we protected people's payslips from higher taxes, froze fuel duty and increased the national living wage making three million people £1,400 a year better off from April. 'Official data shows that real pay growth increased to its highest rate in three years in the three months to November and in our Plan For Change we have been clear that we will go further and faster to kickstart economic growth so working people have more money in their pockets.'
