Reeves to lock billions of entitlements to invest in the United Kingdom

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Chancellor Rachel Reeves is looking to liberate billions of pounds from the 1.2 trillion UK pension system in its recent attempt to start growth.

The government is preparing to allow companies to reach the surplus of the plan – which is estimated at about 100 billion pounds – to encourage them to invest in more dangerous assets, according to the people who have been informed of the consultant’s thinking.

“Satan is in the details, but we are positively tended,” said one of the government’s familiarism.

The Treasury refused to comment on the discussions-which was reported by Sky News for the first time-but the city’s sources said that Varon Chandra, the chief trading advisor to Mr. Kerr Starmer, discussed the possibility of using the so-called surplus to enhance the economy.

The shift in focusing on DB plans comes as the advisor prepares for it Growth Wednesday. Retired pension experts estimate that allowing companies to reach the surplus of the plan can open up to 100 billion pounds for investment.

The government has already focused on reviewing pensions on unifying the specified contribution (DC) and the assets of pensions for the local authority. review In pensions, the government’s adequacy, which hopes to pay more investment in the United Kingdom – was delayed indefinitely.

In an interview with The Financial Times in November, former pension minister Emma Reynolds said she had given priority to fixing the capital’s workplace plans because that was “where growth.”

She pointed out that the majority of DB pension plans were closed to new members and “it was natural that they had a long time frame” as the plans move to less risky assets while they were ending or selling pension obligations towards the insurance company.

However, those familiar with the industry said that the radical improvement in the financing of retirement pension plans in recent years after government bond revenues has increased means that many now in a position allows them to have more risks, if the bases enabled companies and members of the plans to benefit from it – they are.

“The reason for government advertisements was about the capital and the local government pensions system is that they did not really understand DB and believe that it cannot be touched.. The head of the pension planning with billions of pounds said:” The effects of not touching them are worse for the government and I think they are now aware of that now “.

David Lin, CEO of TPT Retirement Solutions, who runs DB and DC pensions, said that allowing companies to reach the surplus plans. .

Access to the surplus surpluses can slow the pace of pension funds by emptying pension obligations to insurance companies, with about 50 billion pounds of assets in the so -called bulk installment transactions in each of the past two years, according to the traditional pension consultations WTW .

Stopping this trend can help support the government of government bond markets and stocks in the United Kingdom in the long run because insurance companies usually sell Gilts and invest in bonds of companies with a higher return – many of them abroad – as well as infrastructure to achieve their profits.

Zoe Alexander, director of the pension and savings collection, said that she had supported the surplus of release, with correct protection to ensure that the advantages of the members are safe.

She said: “Reducing the legislative threshold to allow surplus returns will encourage the trustees (in conjunction with their employers) to adopt a more ambitious mentality and the most dangerous investment strategies for their DB assets, including increasing investment in UK’s assets.”