UK
Hunt to unveil pension reforms next month


Adam Mawardi
Fri, 23 June 2023

The Chancellor is expected to outline the highly anticipated pension reforms at the annual Mansion House speech in the City of London next month

Jeremy Hunt is poised to reveal broad plans to overhaul the UK’s pensions regime to unlock billions of pounds of investment into high growth British companies.

The Chancellor is expected to outline the highly anticipated pension reforms at the annual Mansion House speech in the City of London next month, the Financial Times reported.

The proposals include new rules to encourage UK pension schemes to invest in lucrative, but potentially riskier British assets, such as equities, early stage companies and infrastructure.

The announcement is also expected to contain proposals to consolidate the fragmented UK pensions regime, following the likes of Australia and Canada.

Mr Hunt is said to be “closely examining” calls from the Tony Blair Institute to merge thousands of defined benefit pension schemes to create super funds able to invest hundreds of billions.

The final version of his plans will be set out in his Autumn Statement later this year.

It comes as Mr Hunt faces mounting pressure to overhaul the pensions industry amid criticism over-cautious funds are costing retirees ­thousands of pounds by not taking enough risk.

The Chancellor also hopes that investment from Britain’s £4.6 trillion retirement industry will help accelerate economic growth as the country faces soaring inflation.

While his reforms are designed to give savers more choices over their investments, the Chancellor is not proposing to control what investments pension funds make.

The Treasury said: “We have the opportunity to boost returns for British pensioners by increasing investment in the UK’s highest growth sectors. This will also unlock billions for our most cutting-edge businesses and ensure they can access the finance they need to scale up and list in the UK.”