Rachel Reeves Credit: HM Treasury/Flickr
Chancellor Rachel Reeves has said the government and the industry are "united" when it comes to delivering for savers and the UK economy.
During her Mansion House speech yesterday (15 July), Reeves said: "Pension funds and this government are united in our determination to deliver higher returns for savers and more investment for the economy."
Last year at Mansion House the government set out an overhaul of the UK pensions system which included proposals for the creation of defined contribution and Local Government Pension Scheme ‘megafunds', which were reaffirmed in the Pension Schemes Bill.
She said the move "will mean larger and more powerful pots of funding invested productively across the country".
The Pension Schemes Bill – which had its second reading in parliament last week – reserves the power to mandate pension funds to invest productively in a wider range of assets.
A draft of Reeves' Mansion House speech, seen by Professional Pensions, said that Reeves was "confident she would not need to use that power", however this line that was deleted from the final speech.
The industry has shown initiative to invest in more productive assets, evidenced in part through the Mansion House Accord – which is a voluntary agreement – where 17 pension providers committed to investing 10% in private assets with at least half in the UK.
During her Mansion House speech which was delivered yesterday (15 July), there was a lack of mention of various areas that had been speculated on, including phase two of the pensions review which is expected to focus on adequacy.
