Key things to know about the Government’s “landmark” pensions review


The first phase of the Government’s “landmark” pensions review is underway. The review forms part of the Government’s mission to “boost growth and make every part of Britain better off” by unlocking the “untapped potential in our pensions markets, with an industry worth around £2 trillion”.

What is the Government’s pensions review?

In order to tackle what Emma Reynolds, the first joint Treasury and Pensions Minister, has called the “twin challenges of productive investment and retirement outcomes”, the Government launched its pension review focusing on boosting investment, increasing pension pots and tackling waste in the pensions system. The work is to be undertaken in two phases, the first focusing on investment and the second considering further steps to improve pension outcomes and increase investments in UK markets (including assessing retirement adequacy).

DC workplace schemes and the Local Government Pension Scheme are in-scope for this review. Ongoing policy developments relating to DB schemes are being tackled separately.

Where are we now?

On 4 September 2024, the Chancellor launched a call for evidence, which seeks input, data and information from interested parties to help inform the first phase of the review.

The call for evidence asks a range of questions on topics such as the impact of DC market consolidation on UK pension savers, the future role of master trusts, GPPs and single employer schemes in the UK pensions landscape and issues surrounding cost vs value in the workplace DC market.

With boosting investment in the UK high on the Government’s pensions agenda, views are sought on potential routes for achieving higher investment allocations to UK asset classes and whether there should be Government intervention to encourage schemes to increase investment budgets or seek higher investment returns from a wider range of asset classes.

What comes next?

The call for evidence closed yesterday, 25 September 2024, and initial findings from the Government’s first stage review are expected to be published later this year, ahead of the introduction of the Pension Schemes Bill. Our response to the call for evidence can be found here.

The Government is expected to launch the next phase of its pension review later this year.

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