{"id":81751,"date":"2025-05-07T11:46:08","date_gmt":"2025-05-07T11:46:08","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/81751\/"},"modified":"2025-05-07T11:46:08","modified_gmt":"2025-05-07T11:46:08","slug":"rachel-reeves-short-sighted-gamble-is-serious-threat-to-uk-pensions-uk-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/81751\/","title":{"rendered":"Rachel Reeves\u2019 \u2018short-sighted gamble\u2019 is \u2018serious threat\u2019 to UK pensions | UK | News"},"content":{"rendered":"

Rachel Reeves<\/a> has been warned that her reported \u201cshort-sighted\u201d plans for UK pensions<\/a> pose a \u201csignificant threat\u201d to savers\u2019 incomes<\/a>. The Chancellor is believed to be putting together an agreement that would see pension funds commit up to 10% of their assets – experts think this could be around \u00a3100billion – into private markets, with half of these (\u00a350billion) channelled into UK-based investments. It is also believed that, if firms do not voluntarily comply, the government may legislate to enforce the policy. Now, Nigel Green, CEO of independent financial advisory and asset management organisation deVere Group, has called the move \u201cdangerous and misguided\u201d.<\/p>\n

He added: \u201cThe purpose of a pension fund is to grow wealth for savers over the long term. That means investing wherever the most compelling returns are likely to be found\u2014 and not according to government diktats designed to patch over domestic political pressures.\u201d The expert also said: \u201cForcing pension funds to tilt portfolios toward one geography regardless of market conditions could distort asset allocation, reduce diversification, and expose millions of future retirees to lower performance.<\/p>\n

\u201cIt\u2019s not the job of pension managers to carry the weight of industrial policy.<\/p>\n

\u201cIf UK firms are being overlooked, there\u2019s a reason for it. The solution isn\u2019t to coerce capital into local markets.<\/p>\n

\u201cThe solution is to make those markets perform better.\u201d<\/p>\n

The CEO claimed that the change would see people\u2019s pension contributions treated like a \u201cnational piggy bank\u201d, insisting that savings pots should not be turned into instruments of short-term policymaking.<\/p>\n

Mr Green said: \u201cThere\u2019s a clear line between encouraging investment and forcing it.<\/p>\n

\u201cCrossing that line sends the wrong signal to global markets. It also opens the door to future governments feeling entitled to dictate terms on how private savings are deployed.\u201d<\/p>\n

He added: \u201cStrong, independent pension funds are a cornerstone of long-term financial security.<\/p>\n

\u201cUndermining that strength weakens the whole savings system. It would be a short-sighted gamble that comes at the expense of those who\u2019ve spent decades preparing for retirement.\u201d<\/p>\n

Ms Reeves rumoured policy would build on the Mansion House agreement, led in 2023 by then Conservative Chancellor Jeremy Hunt<\/a>, which aimed to increase growth by pledging a minimum 5% of workplace pension savings into unlisted equities by 2030.<\/p>\n

In January, the government said that restrictions will be lifted on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds. It added that ministers will give businesses more flexibility, “allowing trapped surplus funds to be invested into the wider UK economy, or given to scheme members as additional benefits”.<\/p>\n

The announcement added: “Where trustees agree to share a portion of scheme surplus with a sponsoring employer, the employer may choose to invest these funds in their core business, for example to purchase equipment or supplies, and\/or provide additional benefits to members of the pension scheme.<\/p>\n

“Approximately 75% of schemes are currently in surplus, worth \u00a3160 billion, but restrictions have meant that businesses have struggled to invest them.”<\/p>\n

Ms Reeves said at the time: “I know this government and businesses are united on growth being the top priority for our economy, which is why I am fighting every day to tear down the biggest barriers to growth, taking on regulators, planning processes and opposition to this urgent mission.”<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves has been warned that her reported \u201cshort-sighted\u201d plans for UK pensions pose a \u201csignificant threat\u201d to…\n","protected":false},"author":2,"featured_media":81752,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,1700,474,528,2074,2499,12523,619,16,16235,15],"class_list":{"0":"post-81751","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-economy","10":"tag-finance","11":"tag-labour-party","12":"tag-pension","13":"tag-personal-finance","14":"tag-personal-finance-section","15":"tag-rachel-reeves","16":"tag-uk","17":"tag-uk-politics-section","18":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114466389227599939","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/81751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=81751"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/81751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/81752"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=81751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=81751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=81751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}