Autumn statement pensions plans represent “missed opportunity"

Autumn statement pensions plans represent “missed opportunity"

22 Nov 2023

On 22 November 2023, the Chancellor of the Exchequer Jeremy Hunt outlined a series of pensions reforms as part of the Government’s Autumn Statement.

Reacting to the announced reforms, Simeon Willis, Chief Investment Officer at XPS Pensions Group, said: “The political nudge required to redirect defined benefit schemes from their current de-risking path needed to be massive. In that respect this package of measures represents a missed opportunity. With further consultations launched, the window of opportunity to implement material changes to create benefits for members and the UK economy before the end of the current Parliament is quickly closing.”

Wayne Segers, Partner at XPS Pensions Group, said: “We welcome the Government’s plan to introduce measures to allow DB pensions schemes to access surplus. But given many schemes are already in surplus, the industry needs clear rules now that provide a structure for trustees and employers to run their schemes on and to safely build up and release surplus. Employers could then be allowed to access these funds, provided they use them to reinvest in their UK operations or boost the pension savings of other employees in DC schemes.”