The Government has announced proposals for billions of pounds to be allowed to invest in boosting Britain’s economy from Occupational Defined Contribution (DC) pension schemes.
Funds in DC pension schemes have nearly tripled to £60 billion since automatic enrolment into the workplace pension started at the beginning of 2011.
The Government is looking at these proposed investment reforms given that these types pf pension and their future benefits would depend on earnings from investing in areas with growth potential and DC pension schemes with 5,000 or more members may then also be required to produce a yearly report on what types of fund they invest in and how much.
This type of new investment fund option may provide opportunities for long term investing for the masses, offering potentially higher returns as well as boosting jobs within a new, modernised and future looking UK economy.
Ministers are also looking at encouraging smaller DC schemes to merge into larger trade type schemes (our made up examples: the “National Fish and Chip Shop Association Pension Fund” or the “National Plumbers Pensions Fund Scheme”) to provide economies of scale which would then also offer lower charges and funding to invest in developing sectors such as smaller tech. firms, housing, sustainable developments and green energy.