Chancellor launches first phase of pensions review

On August 16, 2024, the Chancellor launched the UK pensions review promised in the Labour party’s election manifesto. It is to be run by Emma Reynolds, the Minister for Pensions, and the first phase is focussed on investment and the terms of reference set out the four areas where policy development will be targeted initially.

The first phase of the review will focus on developing policy in four areas:

• Driving scale and consolidation of DC workplace schemes.
• The structure of the pensions ecosystem and achieving a greater focus on value rather than cost in order to deliver better outcomes for future pensioners.
• Encouraging further pension investment into UK assets to boost growth across the country.
• Tackling fragmentation and inefficiency in the Local Government Pension Scheme through consolidation and improved governance.

Initial findings are due to be reported later this year ahead of the introduction of the Pension Schemes Bill. The second phase is due to start later in 2024 and, alongside investment, will consider further steps to improve pension outcomes, including assessing retirement adequacy. Ongoing policy development in the DB workplace pension sphere will remain separate from the review.