Pension funds rebuff PM and Chancellor’s ‘investment big bang’ call to action
The letter called for a new approach from pension funds whereby pension savers can be a driving force behind the UK’s recovery from the pandemic as well as benefit from it.
They argued that pension savers can benefit from “the fruits of UK ingenuity and enterprise”.
Tom Selby, head of retirement policy at AJ Bell, said in the wake of the letter: “Just because the PM and Chancellor click their fingers doesn’t mean pension investors will flock to illiquid UK investments in their droves.”
“Ultimately, the main job of pension schemes is to invest in a way that maximises returns for their members, not in the way the Prime Minister tells them to.”
He urged investors to retain the same stress-tests on investments as before and think about what level of risk they are comfortable with.
LCP, a leading pensions consultancy, welcomed an “investment big bang” and signalled willingness for long-term UK investments but called on the Government to remove barriers to such activity.
