Rashi Mehta
The Chancellor of Exchequer, Rachel Reeves hopes to boost pension pots by £11,000 and unlock billions more in investment with a review of retirement savings, “to boost investment, increase pension pots and tackle waste in the pensions system”. With pension schemes expected to manage about £800 billion by 2030, the review encourages investment in productive assets to boost economic growth.
As per the King’s speech, the announcements include the Pension Scheme Bill to help savers by instituting automatic consolidation of small pension pots for the improvement of government.
What is a Pension Scheme Bill?
The Pension Payment Bill as known as Pension Scheme Bill was established by King Charles on July 17 in the UK is a reform introduced to improve the pension system in the country. The main motive is to enhance the value and security of pension savings for individuals and to address issues related to retirement savings for better management of pension schemes.
Through this bill the government addresses the challenges and the lack of saving for retirement.
The consolidation of small pension pots prevents individuals from losing track of their multiple small pension pots collected through various jobs, by merging and providing a large pension pot and helps to manage the retirement savings with accordance.
Reeves announced a major pension review
Rachel Reeves has announced a major pension review to unleash the better investment and savings for the overall growth of the economy.
She said the review is part of “a big bang of reforms that includes a £7bn national wealth fund and planning reforms to unlock the UK’s potential growth. There is no time to waste. That is why I am determined to fix the foundations of our economy so we can rebuild Britain and improve people’s lives.”
Emma Reynold, joint role across DWP and treasury said: “As the first ever joint Treasury and DWP minister, I am uniquely placed to tackle the twin challenges of productive investment and retirement outcomes.Over the next few months the review will focus on identifying any further actions to drive investment that could be taken forward in the pension schemes bill, before then exploring long-term challenges to ensure our pensions system is fit for the future.”
GIPHY App Key not set. Please check settings