King's Speech - Pensions Scheme Bill

Commenting on the inclusion of a Pensions Schemes Bill in today’s King’s Speech, Calum Cooper, Head of Pensions Policy Innovation, Hymans Robertson, says:

“We welcome the promise of a new pensions bill in today’s King’s Speech. The new government is clearly identifying the importance of pensions and the outcomes that will be vital for millions of savers. In its inclusion of measures around both small pots and value for money, it is good to see a continuation of some of the work already done. We hope it will utilise the collective industry wisdom that’s already been pooled through many pensions consultations over the last few years as it drives action forward.

“We are also very encouraged to see that the focus returning to a pension being a pension; not just a savings product. The bill should empower new thinking and actionable innovation around retirement choices for DC members. This should include sophisticated "straight through” decumulation products to help people navigate from work into retirement safely and successfully. Done well it can also empower collective savings that deliver incomes for life at a higher level.  

“As a founding adviser to Clara we also see the huge benefit of using commercial consolidation in defined benefits. But it is vital to ensure it is done in a way that delivers better member outcomes. Demonstrating better member outcomes should be a key requirement.

“It is clear that the government wants pensions, and the National Wealth Fund bill, to play a role in providing meaningful stimulus to UK productivity. For this, the pensions industry will need clarity – both a practical road map and clear and attractive opportunities to invest at scale. Hopefully, this bill will play an important part in stimulating this thinking and direction too. There is a huge societal opportunity in unlocking the productive potential of our £2.5trn of pensions.

“Given how important pensions are to everyone it’s disappointing to see that the pensions review, promised in the Labour manifesto, was not included in the King’s Speech. This is a strong start but there are some tough choices to make beyond consolidation and decumulation defaults, for example getting the self-employed saving and increasing savings levels. An independently led review, with cross party support would give us the best chance of providing meaningful change for a generation that will ensure sustainable pensions. We hope it will be high on the government’s agenda and included in the Chancellor’s Budget in the Autumn.”