UK - Equities are set to outperform bonds by around 4% per annum owing to growth in share dividend yield, says Schroders chief economist Keith Wade.
He said: “The UK equity market reached an important milestone this month as the dividend yield on equities rose into line with that available on UK government bonds – the last time we saw this was back in 1957.
“This means the critical economic question facing investors is whether we are moving into a period of deflation where prices fall and dividends fail to rise for a sustained period.”
A buyout tool which provides schemes with up-to-date pricing and comparisons between insurers has been launched by JLT Employee Benefits.
The DB white paper sets out plans to review the funding regime, with 'prudent' and 'appropriate' possibly redefined. But James Phillips asks if this could this signal a return to an MFR-like approach?
The trustees of GKN's pension schemes have agreed a package of mitigation measures that would improve funding to a "more prudent level" if Melrose's offer is accepted by shareholders next week.
While the new powers are welcome, most respondents doubt it will make a difference to the outcomes for members, Pensions Buzz respondents say.