BoE rate hike 'not cause for concern' for occupational pensions

Rates rise to 3% yesterday was the biggest single increase in 33 years

Holly Roach
clock • 3 min read

The workplace pensions industry has argued the 0.75% rise in interest rates from the Bank of England (BoE) yesterday (3 November) should “not be too much cause for concern” for schemes but fears of further increases loom.

The historic hike to 3% follows much financial market speculation following the disastrous Mini Budget in September and the increasing economic uncertainties over the last few years. However, the industry is not offering too much concern for the time being. Hymans Robertson co-head of defined benefit (DB) investment Elaine Torry said for schemes, the increase in short-dated rates "in isolation should not be too much cause for concern". However, she warned the rationale for the increase, coupled with other upcoming fiscal announcements "could cause a ripple effect up the yield curve...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Pensions

'Patchy progress' on government's advice and free guidance efforts

'Patchy progress' on government's advice and free guidance efforts

The majority of first-time pension accessors are going down a DIY route

Hope William-Smith
clock 29 November 2022 • 2 min read
PFS warns FOS on BSPS and reminds 'half of transfers were suitable'

PFS warns FOS on BSPS and reminds 'half of transfers were suitable'

Body says consumers may end up paying bills ‘not justified by facts’

Hope William-Smith
clock 28 November 2022 • 1 min read
Leeds Crown Court

Trustee duo who did not take suitable advice sentenced over illegal loans

Prosecution by The Pensions Regulator leads to two suspended sentences

Hope William-Smith
clock 28 November 2022 • 2 min read