UK pension reform – the case for further consolidation

Argi Sampedro argues scheme scale will help managers implement better portfolios

clock • 10 min read
Argi Sampedro is ESG policy and regulatory strategist at Neuberger Berman
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Argi Sampedro is ESG policy and regulatory strategist at Neuberger Berman

We believe the current fragmentation of the UK’s pension schemes, along with a focus on costs versus outcomes, leads to inefficiencies and missed opportunities for pension funds to invest in assets with high risk-adjusted returns. We therefore welcome the Pension Schemes Bill announced in July and further details on the government’s plans announced in the Mansion House speech and the subsequent two consultations which closed this week.

The oversight, cost, maintenance and management challenges facing smaller defined contribution (DC) and corporate defined benefit (DB) schemes hinder asset performance. Consolidation can reduce cos...

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