Commenting on the government confirmation of their commitment to triple lock, Chris Noon, Partner, Hymans Robertson says: “The triple-lock used to increase State pension is an important long-term protection for pensioners. Too many pensioners continue to live on incomes below the pensioner poverty, which in tandem with the increasing inflation rise, are leading to increasing worry for many. The Covid pandemic and the arrival of furlough lead to a one-year anomaly, which we are pleased to learn the government has confirmed will end next year.
“This was a short-term technical issue and it is welcome news that the Government has not been persuaded to throw out the triple lock completely. The UK already has one of the worst State pensions across the OECD - throwing out the triple-lock would have risked pushing more pensioners in to poverty, which combined with a current worrying economic crisis would have been disastrous for many.”
Commenting on the announcement surrounding illiquid assets in the Spring Statement, Callum Stewart, Head of DC Investment, says: "In today’s Spring Statement, it is great to see Rishi Sunak reiterate and confirm his intention to relax DC charge cap rules to ease the potential for greater levels of investment and innovation in regard to illiquid assets. This is great news for individual DC pensions scheme members as this will provide attractive opportunities for them to improve outcomes through their DC pension scheme.
“The creation of new long-term asset funds will provide DC schemes with access to investments that could improve returns net of costs and charges over the longer term. As the barriers to accessing illiquid investments ease these will help enable the improvement in these member outcomes. Now is the time to explore this exciting development for those with the governance capacity to do so.”
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