Reforms to pensions proposed in order to drive growth
The Prime Minister and Chancellor met with business leaders last week to unveil proposals aimed at increasing flexibility for occupational defined benefit pension schemes. Under the new plans, restrictions will be lifted on well-funded occupational defined benefit pension schemes, allowing those in surplus to invest more freely. The aim is to stimulate economic growth by enabling businesses to utilise these funds more effectively. Currently, around 75% of such pension schemes are in surplus, amounting to £160 billion. However, existing restrictions have made it challenging for businesses to invest these funds, even when both trustees and sponsors are in favour. What [...]