Royal London responds to 'Unlocking the UK pensions market for growth' consultation
Jamie Jenkins, Policy Director at Royal London, responds to the Government's pensions consultation:
"Royal London is supportive of the Government’s agenda for pension investments to contribute further to economic growth, but we do not believe that setting hard targets is the best approach for the Government to achieve its objectives.
"While greater scale will enable greater investment in private and illiquid assets, we don't believe that scale alone would encourage or incentivise such a move. Equally, there is nothing inherent within scaling up investments that would create a greater home bias for listed equity investment.
"A more direct route for Government to achieve its aim would be to focus instead on the investment mix deployed by schemes, which we believe will naturally lead to greater scale. This could be achieved through careful design of the Value for Money (VfM) framework, currently being consulted upon by regulators. That could be shaped in a way that places emphasis on access to illiquid, longer-term assets – such as critical infrastructure – and this will almost certainly drive a higher UK investment bias. However, to achieve a material shift in thinking, the framework would need to look beyond short-term returns and consider the longer-term benefits.
"This is a perfect opportunity to refocus the timeframe over which we consider the value of investing for retirement which is, after all, several decades in duration."
For further information please contact:
Neil Cameron, PR Manager
- Email: neil.cameron@royallondon.com
- Mob: 07919 171969
About Royal London
Royal London is the largest mutual life, pensions and investment company in the UK, and in the top 30 mutuals globally*, with assets under management of £169 billion, 8.5 million policies in force and over 4,400 employees. Figures quoted are as at 30 June 2024. Learn more at royallondon.com.
*Based on total 2022 premium income. ICMIF Global 500, 2024