Pensions Investment Review: interim report, consultations and evidence
The Chancellor has launched a landmark pensions review. The first phase is focussed on investment and the interim report of phase one has now been published.
The Chancellor announced the Pension Investment Review’s interim report on 14 November 2024. This puts forward proposals to deliver a major consolidation of the UK pension system and seeks to unlock billions of pounds of new investment for the UK economy and boost returns for savers.
Alongside the interim report of the Pensions Investment Review, the government has published two separate consultations on measures:
- to deliver a major consolidation of the Defined Contribution market and the Local Government Pension Scheme in England and Wales (LGPS) so pension funds have sufficient scale to facilitate investment in productive assets and industries of the future
- to explore how to address the culture of cost before value to embed better long-term value and returns in the DC market for the nation’s pension savers
- to overhaul the way the LGPS invests to deliver large pools of professionally managed capital in line with international best practice, while embedding investment in local communities as a priority, placing the scheme on a stronger, more sustainable footing in the interest of members, employers and local taxpayers
The government has published an analytical publication which provides analysis of the trends in UK pension fund asset allocations over time, evidence on the benefits of scale, and comparisons to selected countries.