This week brought important updates in the industry, including a report from The People’s Pension, which suggested that the UK workplace pension industry could save savers "hundreds of millions of pounds" by investing in private markets.

The provider also appointed People's Investment Limited as the primary investment adviser to the trustee of its defined contribution (DC) master trust this week.

In the defined benefit (DB) space, Lufthansa UK Pension Trustee Limited secured a £120m agreement with Royal London, insuring Lufthansa Group’s three UK DB pension schemes in a single transaction.

Meanwhile, K3 Advisory, in partnership with Cartwright, completed five small scheme buy-ins, all insured by Just Group.

The Financial Services Compensation Scheme Pension Scheme also completed a £25m full buy-in with Pension Insurance Corporation.

UK bulk purchase annuity insurers were urged by Aon to focus on key industry priorities in 2025 to ensure the continued delivery of “attractive and robust” insurance solutions.

All signatories to the Sustainability Principles Charter for the bulk annuity process also agreed to adopt the Bulk Annuity Sustainability Survey, replacing the multiple surveys currently used by different advisers.

In other news this week, First Actuarial’s new Redress Tracker found that a typical firm’s exposure to redress liabilities in relation to DB pension transfer advice is now likely to be below 5 per cent of the transfer value advised.

Meanwhile, Broadstone’s Sirius Index revealed that DB pension schemes continued to improve their funding levels at the start of 2025, though turbulence is expected amid a “simmering” global trade war.

In investment news, Nest announced it will become a 10 per cent shareholder in IFM Investors’ holding company, Industry Super Holdings, with the aim of boosting UK private market investments.

Aviva Investors also launched a Venture and Growth Capital fund, with an initial £150m commitment from Aviva.

The government’s plans to lift restrictions on how DB surplus funds can be invested were analysed by LCP, with the firm suggesting that the plans could go much further than most in the industry initially expected.

Meanwhile, the Treasury Committee launched an inquiry into how artificial intelligence is being deployed across various sectors within financial services, including pensions, insurance, retail banking, and investment banking.

The Trustee Sustainability Working Group, a cross-industry trustee group, outlined its 2025 priorities, emphasising the need to work with regulators on climate scenario analysis and reporting requirements for small schemes.

The group also urged pension scheme trustees to maintain focus on the urgency of climate change.

On the research front, Hymans Robertson found that 80 per cent of DC scheme members would trade the flexibility of their savings for a higher income, while 78 per cent would do the same for a guaranteed retirement income.

Separately, Royal London analysis revealed that the average worker is on course to miss their annual retirement income target by approximately £12,000.

A report from MRM highlighted a lack of engagement among young workers as 48 per cent of 18-30-year-olds said they had “never heard” of DC pensions, despite 66 per cent believing their long-term financial aspirations are achievable.

Finally, in government news, The Department for Work and Pensions permanent secretary, Peter Schofield, confirmed the department has "basically finished" its state pension correction exercise and is making "good progress" in addressing Home Responsibilities Protection errors.

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