The latest Pensions Management Institute (PMI) Pulse Survey has shown that two-thirds of industry respondents (66%) have been unhappy with the direction of pensions policy in the past six months. Dissatisfaction with the direction of pension policy has increased from the 61% of respondents who were unhappy last year.
The industry also has a negative outlook for the next six months as more the three-quarters of respondents (76%) are pessimistic about the direction of policy, with respondents concerned about the lack of communication from the Labour Party about its plans for pension policy if it wins the next election. Slightly over half of respondents (53%) also doubt The Pensions Regulator will focus on the right areas in the coming months, with respondents citing a lack of capacity and political interference as potential issues.
On the Government’s Mansion House Reforms, only around a third of respondents (31%) believe the policy intentions will be effective. More than six in ten (61%) doubt the changes will lead to the expected increase in investment in UK productive assets. Just three in ten (31%) of respondents believe the reforms will have enough cross-party support to be fully implemented in an election year. As a result, only 43% of respondents believe the reforms will become embedded in UK pensions policy.
Robert Wakefield, President of the Pensions Management Institute, comments: “Pensions have been close to the top of the Chancellor’s agenda over the past six months as the Government looks to deliver its Mansions House Reforms as well as other new initiatives such as its pot-for-life programme and pensions dashboard. Understandably, the substantial regulatory reforms have left many feeling frustrated at the lack of clear direction in pensions policy. The influx of policies makes it look like the Government is throwing up ideas, hoping some may be a success without having a long-term plan with industry support.
“There are also concerns that too many pension reforms are happening at the same time without the required resources being available in the industry. Our research shows that the industry is increasingly sceptical that many of these changes will now be effectively implemented due to a potential lack of cross-party support. Many also want more clarity from the Labour Party, which may be in Government in the next six months, on any changes it plans to make to pensions policy.”
The full results of the survey are available here
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