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An update from our Parlimentary Advisors
HM Treasury and the Department for Work and Pensions published a press release on the Chancellor’s plans to review the pensions system.
Chancellor of the Exchequer Rachel Reeves has announced a comprehensive pensions review aimed at driving economic growth and enhancing the financial well-being of British citizens.
The review aims to channel billions from defined contribution pension schemes into the UK economy, potentially increasing individual pension pots by over £11,000.
The review will explore utilizing the £360 billion in LGPS for more productive investments and reducing the £2 billion annual expenditure on fees.
The announcement precedes the first Growth Mission Board meeting, with measures already underway to reform planning, create a National Wealth Fund, and improve stock exchange listings.
Led by the first joint Treasury and DWP Minister, Emma Reynolds, the initial phase will focus on increasing investment and pension outcomes. The next phase will further address retirement adequacy and market investments.
The Chancellor and Pensions Minister will engage with industry leaders to shape the review. Supportive responses from key industry figures highlight the anticipated positive impact on economic growth and pension savers.
Legislative actions, such as the Pensions Bill introducing a Value for Money Framework, have been taken to enhance governance and returns for pension savers.
Overall, the review aims to strengthen the UK’s economic foundations, ensure better retirement outcomes, and leverage the significant potential of the pension industry to support national growth.
*photo credit: Creative Commons
