King's Speech disappoints pension experts

The absence of a Pensions Bill in today’s King’s Speech, was “frustrating” and “disappointing”, according to pension experts. Hopes for pension reform will now focus on the Chancellor’s Autumn Statement due on 22 November. Steven Cameron, pensions director at Aegon said: “We’re disappointed that the Government didn’t include a Pensions Bill in today’s King’s Speech. This is likely to be the last parliamentary session before the General Election, and the current Government has been consulting on a long list of initiatives. In the absence of a Pensions Bill, other routes will need to be found to advance these.” He said all eyes will now be on the Chancellor’s Autumn Statement to see whether there are more details on Jeremy Hunt’s is ambitions for defined contribution pension schemes to increase their investment in private equity, with a view to boosting the UK economy. Mr Cameron said: “While there’s no Pensions Bill to take these forward, we believe they remain Government priorities and await clarity on next steps. We encourage the Government to prioritise those initiatives with the greatest potential to boost retirement outcomes of individual members.” Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: “Pensions policy reform always has the capacity to surprise and today’s King’s Speech was no different. It was widely reported to include a Pension Reform Bill to push forward key measures but when the announcement was made pensions were noticeably absent.” The Bill was expected to advance the summer’s Mansion House reforms which looked to speed up the consolidation of defined benefit schemes, boost investment in more illiquid assets and enhance value for money in DC schemes. Ms Morrisey said: “Their absence is confusing and means much needed progress in these areas could effectively grind to a halt before the next general election. The Autumn Statement could well include some pension announcements but without legislation scheduled the industry faces a frustrating time waiting for progress on these important reforms.” Alice Guy, head of pensions and savings, interactive investor, said: “With the clock ticking until the next election, the government has simply run out of time to address some of the long-term issues affecting pensioners and those saving for retirement. Big questions like who will pay for long term care and widening gap between the age most people are retiring and the state pension age, will need to wait for another day.”

King's Speech disappoints pension experts

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