Industry experts warn pension utensils of savers

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Some pension experts have warned that the controversial change in UK legislation does not agree with what the ministers promised and can harm the results of retirement to millions of savers.

The bill of pension plans, which is expected to become a law next year, proposes to grant the organizers a authority to impose specific contribution plans (DC) to invest the minimum amount in private markets.

“This ruling is not framing as a reserve authority and is not considered that there will be no harm to pension savings,” said Charles Randel, the former head of the Financial Conduct Authority.

“This is unfortunate, given the intervention state does not seem very convincing in the first place. I am concerned that this may undermine confidence in providing pensions.”

The authority comes alongside a new base stating that DC plans in the workplace must contain at least 25 billion pounds of assets in its virtual money by 2030, or 2035, provided that it appears reliable plans to reach the threshold within five years.

Some experts warn that the step to give strength to the organizers can impose Retirement boxes To invest in a queue with the Dar Al -Qasr Voluntary Agreement.

Under the agreement, 17 of the largest pensions in the UK workplace in the United Kingdom pledged to invest at least 5 percent of their assets in the private markets in the United Kingdom by 2030, provided that the assets are adequately attractive.

Zoe Alexander, director of politics in the pension and savings group, said that the formulation of the ability to apply the assets allocation test in the draft law “can see the voluntary obligations of Dar Al -Qasr’s agreement, a condition that leads the organizer for approval.”

Alexander said: “The government has previously said it intends to maintain any authority in reserves, and therefore this formulation caused anxiety,” adding that the state’s inclusion in investment decisions, “could lead to confidence erosion and may lead to bad returns.”

This step is part of the broader reforms of the government designed to unify the British system and start growth by encouraging more local investment through UK funds.

The retirement pension organizer also said that he actively encourages plans to adopt long -term investment strategies that support both members and national growth.

The ability to set the goals of allocating assets comes with the sunset condition in December 2035, when the virtual boxes must be met 25 billion pounds, and then the power of energy will end if they are not already used.

The government insisted that the payment to make more DC work money invest more in private markets that improve the results of savings, but research from its own actuarial section shows only a simple performance for the governor with private market holdings.

The person close to the Treasury said that the ability to delegate assets allocated was not expected to be used automatically, in addition to approving virtual funds of up to 25 billion pounds.

They said that the administration was familiar with the concerns that the camel in the draft law is “insufficient” in this point and will exceed it if necessary.

The Treasury said that the ability to determine the goals of allocating assets was “there as a successor” and they added, “We do not expect to use them because we are confident that the plans are now moving in the right direction, towards focusing more on the returns of diversification and investment to get up.”