Sorting by


Jeremy Hunt to announce pension funds investment reforms to put savers ‘first and foremost’

Jeremy Hunt is set to announce pension funds reforms which he says will boost economic growth and increase pension returns for pensioners.

The chancellor will use his City of London speech on Monday (10 July) to announce his plan which he hopes will encourage pension funds to be invested in fast-growing firms.

Mr Hunt describes the reforms as “evolutionary not revolutionary” and said he hopes they will encourage the financial sector to “unlock capital” and increase returns for pensioners.

Alongside regulatory reforms, he will welcome an agreement with leading pensions firms to put 5 per cent of their investments, a sum of up to £50 billion, into high-growth businesses.

Aviva, Legal & General and Phoenix Group are among those understood to be taking part.

Pensions firms welcomed that Mr Hunt was not making the move mandatory, as the industry had been warning against.

In his annual Mansion House speech, the Chancellor will pledge that changes will put the needs of pension savers “first and foremost”.

“It will be an evolutionary not revolutionary change to our pensions market,” he is expected to say.

Mr Hunt will pledge to prioritise a “strong and diversified” gilt market, meaning he was not forcing firms to favour riskier investments over the low-risk ones offered by the Government.

He will also set out a “golden rule” of never making changes that “compromise” the sector with what he is calling the Mansion House Reforms.

Nigel Peaple, the Pensions and Lifetime Savings Association’s policy director, said: “The Chancellor has confirmed today that the pensions sector will keep their freedom to invest in the interest of the individuals whose savings they manage.

“This is the key priority for the pensions sector and we welcome that Mr Hunt has listened to our views on this important matter.

“After the gilt market turmoil of last September, it is reassuring that the Government is committed to a strong and diverse gilt market and that, in consequence, it is seeking evolution not revolution with regard to pensions.

“We look forward to continuing our dialogue with the Government on their proposed pensions reforms, seeking always to achieve outcomes that mean a ‘win, win, win’ for savers, pension schemes and the UK.”

Michael Moore, chief executive of the British Venture Capital Association, said: “We welcome the Chancellor’s recognition of what we have known to be true for a long time, that British pension savers are losing out.”

Additional reporting by Press Assciation.

Source link

Related Articles

Back to top button