Pensions - Articles - Focus on Value guidance for DC pensions investments

 “Aegon UK welcomes the new regulations that will encourage defined contribution (DC) pension trustees to consider a wider range of investments. This is in line with the growing understanding in the industry that pension funds should focus on value rather than cost. It also creates opportunities for new solutions, such as illiquid assets, to be held as part of a globally diversified portfolio.

 “When used effectively, illiquid assets have the potential to improve retirement outcomes for the millions of people who save into DC pension schemes in the UK. However as with any investment decision, trustees will need to be sure that the potential benefits outweigh the risks, and that any allocation is in the best interests of members.

 “Investors need stability and predictability in order to make long-term investment decisions. We are therefore concerned about the recent changes to some of the UK's net zero policies which were announced by the Prime Minister. These changes could damage investor confidence, making it more difficult to attract the investment needed to create a sustainable economy.

 “We urge the UK government to remain at the forefront of the global transition to net zero by committing to ambitious policies and not wavering in their implementation. This will help create a stable and predictable environment for investors, which is essential for building a sustainable economy and supporting customer outcomes.”
  

 TPRs Focus on Value