Iain Campbell, Senior Investment Consultant, Hymans Robertson, said: “While much more detail is needed on Labour’s full plans for the LGPS, it is clear that the general plans for the growth and acceleration of pooling and the LGPS’s role in investing in the UK will be continued if there is a change of government in the next general election. As ever, our focus will remain on helping our clients with any changes and new requirements placed on their funds, to make sure they can continue to deliver on the purpose of their funds - paying pensions and keeping contribution rates stable and affordable for employers.”
Claire Jones, Head of Responsible Investment at LCP, commented: “We agree with the assessment in the plan that “Climate change presents one of our greatest challenges, but also one of our greatest opportunities for economic growth.” We therefore welcome its commitment to “establish a clear, credible, and transparent framework to give investors the certainty they need to invest” in the UK’s green economy and provide “a crucial funding source for our transition to net zero".
Steve Webb, Partner at LCP, said: “A large part of the Labour agenda as set out in today’s document represents continuity with the current government’s agenda rather than a radical change of direction. The main difference seems to be a slightly more interventionist approach. In particular, a Labour government would strengthen the powers of TPR to force consolidation among smaller DC schemes and would take a closer interest in the investment strategy of the Local Government Pension Scheme. But if the Government had produced today’s document rather than the Labour Party, it would have represented further evolution rather than revolution”.
Lizzy Holliday, Director of Public Affairs and Policy at NOW: Pensions, comments: “We’re pleased to see Labour providing clarity on its future outlook for the financial services industry, particularly its position on important themes notably sustainable finance, innovation within the sector and financial inclusion.
“Empowering people to feel confident about their finances begins with developing a realistic financial inclusion strategy with a focus on promoting financial literacy in schools and colleges. As part of NOW: Pensions partnership with Debate Mate we help to educate students about personal finance in order to help them build healthy relationships with money, savings and pensions. Developing their understanding on key financial topics and building in early understanding of financial resilience can help to avoid feeling unprepared to make financial decisions in adulthood.
“Addressing gender inequalities in the financial services industry – as in all industries - is crucial for businesses, individuals and society. As part of our Fair Pensions For All mission we are very aware that the gender pay gap and the gender pension gap, are sadly, still very real challenges facing women across the UK. Our research in 2022, in partnership with the PPI, found that women would have to start saving into a pension from the age of four in order to retire with the same saving pot as men; this simply shouldn’t be the reality in the 21st century. We continue to focus on this issue and are publishing our new Gender Pensions Gap report next week.
“We welcome the concept of a pension and retirement savings review; pensions are a significant and essential part of all of our lives, and the wider economy. But often this isn’t realised until it’s too late. However, to have the greatest impact on millions of savers we believe joint work on developing a roadmap for Auto-Enrolment, including tackling the challenging topic of pensions adequacy, will be key.”
Tim Middleton Director of Policy and External Affairs at the Pensions Management Institute commented: “PMI is encouraged that the Labour Party shares the current Government’s commitment to increasing investment in UK equities. The establishment of a UK counterpart to the ‘Tibi’ scheme would be a constructive development which would facilitate greater investment in illiquid assets by DC schemes and so improve longer-term returns for members. However, whilst the Labour Party also recognises the need to close the ‘advice gap,’ we would have liked to have seen bolder suggestions over helping members manage decumulation effectively.”
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Labour appears to be pinning its sail to the mast of the Conservative’s Mansion House reforms for pensions. This gives some clarity to the industry, suggesting that should a Labour government come to power, many of the initiatives already in motion, to unlock capital and to bring about consolidation, would continue.
A pensions review has the potential to give impetus to new initiatives too, such as the Lifetime provider model. It’s also encouraging to note Labour's support of streamlining regulation in line with the FCA’s Consumer Duty and its focus on outcomes.”
Alan Collins, Managing Director for Spence & Partners, commented: "The language and content does not indicate that significant change is on the horizon, with many of the "Mansion House" themes featuring in Labour's plans. However, I sigh at the prospect of yet another "review", particularly given how long recent funding code and scheme governance changes have taken to come to fruition."
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