On 14 November 2024, Chancellor Rachel Reeves delivered her first Mansion House speech, outlining the government’s proposed reforms for the pensions industry. These reforms are designed to enhance the security, transparency, and productivity of pensions across the UK. These changes are unlikely to affect the Plan and your pension directly. Your pension continues to be managed with the same diligence and commitment to your financial future.
Consolidation of Smaller Schemes
The Chancellor highlighted the potential benefits of consolidating smaller defined contribution (DC) schemes into larger ‘megafunds’. Research suggests that larger schemes often deliver better returns for their members and can invest more effectively in areas such as innovation, infrastructure, and public services, supporting the wider economy.
While these proposals aim to improve efficiency across smaller schemes, our Plan already operates at a scale that ensures efficiency, expertise, and strong investment outcomes. As such, these reforms will not impact how your pension is managed.
Improvements to Financial Advice
The speech also announced plans for the Financial Conduct Authority (FCA) to explore ways to improve the quality of financial advice and guidance available to the public. For those reviewing their finances, planning for retirement, or considering changes to pension saving, obtaining professional financial advice remains crucial.
We remain committed to ensuring you have access to resources and guidance to support your financial decisions. If you would like to find an independent financial adviser (IFA), MoneyHelper, a government-sponsored service, can help. Visit moneyhelper.org.uk/retirement-adviser-directory to locate an IFA in your area.
A Secure Future
The government’s proposed reforms are focused on strengthening the pensions landscape. However, the government is currently conducting a consultation on these proposals, and as a trust-based scheme, our Plan is excluded from these changes—at least for the time being.
As a member of our Plan, you can rest assured that these changes will not affect the management of your pension. We remain dedicated to safeguarding your retirement savings and delivering the outcomes you expect.