London, 14 November 2024: PensionBee, a leading online pension provider, has commented on pension reforms set to be announced by Chancellor Rachel Reeves in her first Mansion House speech.
Lisa Picardo, Chief Business Officer UK at PensionBee, commented:
On pension megafunds
“A proposal to create pension megafunds could signal a transformative shift for the UK pension landscape.
“The creation of larger funds does have the potential to bring scale benefits, such as improved investment opportunities in areas like infrastructure and green projects, but these advantages must be weighed against the risks. Clear governance, accountability, and a commitment to responsible investment are essential to balancing savers’ best interests with the drive for innovation.
“While we support any initiative aimed at strengthening retirement outcomes, it’s critical that consolidation efforts prioritise savers’ returns, ensuring that member security, choice and transparency remain central.
“In addition, any size requirements should be part of a broader strategy that enables diverse providers to thrive while delivering strong returns and supporting responsible investment, ensuring that all savers can access high-quality, value-driven pensions.”
On LGPS pooling
“We see Local Government Pension Scheme (LGPS) pooling as a substantial opportunity to lead the way in investing in UK-based assets, such as listed equities and unlisted infrastructure and other asset classes. Given the added protections offered by the LGPS structure, these funds are uniquely positioned to act as forerunners in establishing a robust market, paving the way for defined contribution (DC) schemes to follow if justified by the success demonstrated and calibrated by healthy returns for savers.
“With the existing fragmentation within the LGPS, the potential for increased efficiencies and economies of scale are clear. This move not only has the potential to enhance value for savers but could also bolster UK investment and growth.”
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Contact details
PensionBee
Steve Kennedy / Laura Dunn-Sims / Ffion White
[email protected]
dd: +4420 3859 5788
Becky O’Connor
Director of Public Affairs
Mob: +447967 613925
About PensionBee
PensionBee is creating a global leader in the consumer retirement market with over £5.5 billion in assets on behalf of more than 260,000 customers.
Founded in 2014, we aspire to make as many people as possible pension confident so that everyone can enjoy a happy retirement.
We help our customers to combine their retirement savings into a new online account, which they can manage from the palm of their hand.
PensionBee accounts are invested by the world’s largest investment managers, collectively looking after more than $10 trillion in savings between them. Each PensionBee customer has a personal account manager (“BeeKeeper”) to guide them through their savings and retirement journey. PensionBee has an “Excellent” Trustpilot rating based on over 10,000 reviews.
As a public company, we aspire to the highest standards in everything we do because our customers deserve peace of mind. Our team of over 200 pension professionals, based in London and New York, has one focus: you, our customer.
PensionBee is listed on the London Stock Exchange (LON:PBEE).
