• April 23, 2024
 DWP unveils plans for £1.4 trillion in pension assets to deliver for savers and economy

DWP unveils plans for £1.4 trillion in pension assets to deliver for savers and economy

The DWP set out plans to ensure the £1.4 trillion held by pension schemes delivers for savers and the economy. 

Plans include making surplus extraction easier for well-funded Defined Benefit (DB) schemes, alongside a public sector consolidator operated by the Pension Protection Fund.

The consultation – which runs from today (Friday 23rd February) until Friday 19th April – seeks views on how the money held in DB schemes can be best unlocked in the interest of savers and for sustainable investment in the wider economy. Minister for Pensions, Paul Maynard said:

2We are in a welcome position with DB pension schemes enjoying high levels of funding, and we want to make this money work harder for savers and the wider economy. I welcome industry views on our plans to reform the pensions market.”

Over the last decade most DB schemes have become better funded, with the average scheme having a funding level of 113% in 2022, compared to 104% in 2010. This has led to an aggregate surplus of £200 billion.

Additionally, with around 5,000 schemes operating in the UK, consolidation of the market could also further the productive finance agenda.

Katie Johnson, Digital Journalist, Today's Media

Digital Journalist, Today's Media Contact: katie.johnson@todaysmedia.co.uk LinkedIn