At LGIM’s client conference, pension-related theatricals took place alongside discussions of ‘digital humans’ and the long-term trends dominating the investment landscape.
During our client conference last week, we were able to reflect on the themes shaping the future of all pensions, from technology to climate change.
A particular highlight for us was our presentation on the generational shift that is underway in UK pensions. This involved us portraying a millennial and a baby boomer, in a performance that may not win an Olivier Award (although a nomination would be nice).
With reference to the 1970s TV stalwart The Generation Game, we pointed out that people born in the UK between 1946 and 1965 are the wealthiest generation ever, with accrued DB and DC benefits, as well as property assets. Those born between 1981 and 2000, meanwhile, will enjoy far less pension security and will likely be forced to rent for longer.
However, we believe the solutions necessary to secure the retirements of both groups share strong themes in common, which is why the rest of the day focused on innovation, learning and knowledge-sharing.
Mark Zinkula, our chief executive, offered a personal take on the dramatic changes we have seen since the end of the Cold War, pointing out that investors can play a key role in determining the future amid a growing desire for a more responsible capitalism.
Anton Eser, our CIO, later gave an overview of the long-term trends and short-term cycles that are dominating the investment landscape. Shivvy Jervis, a Tech Futurist, went on to explain how we should brace ourselves for the emergence of ‘digital humans’.
Later on we heard about how to prepare, not predict, in making asset-allocation decisions; use technology to boost DC scheme member engagement; decompose investments into their underlying factors; and understand the case for integrating environmental, social and governance (ESG) considerations into investment processes.
There were also sessions on post-retirement solutions, cashflow awareness, real-asset investments – and a wide-ranging presentation by our keynote speaker, Dr Pippa Malmgren, who offered startling insights on geopolitics, artificial intelligence and cryptocurrencies.
Throughout the day, it was a pleasure to talk to clients about what matters most to them, and discuss how everyone can win the pensions Generation Game. In other words, it was very nice to see you… and we hope to do so again in 2019.
What do inflation-linked pension benefit schemes and Texan cowboys have in common? We look at a source of scheme risk that many trustees may not have considered: limited price indexation risk. This could become increasingly important for trustees as their schemes progress along their de-risking glidepaths.