Hunt to introduce pension reform next month

The chancellor is expected to lay out long-awaited pension reforms at his annual City of London mansion speech next month

Jeremy Hunt is ready to reveal his big plans overhauling the UK pension regime to unlock billions of pounds for investment in fast-growing UK companies.

The chancellor is expected to lay out the long-awaited pension reforms in his annual speech at the mansion. in the City of London next month, according to the Financial Times.

The proposals include new rules to encourage UK pension plans to invest in lucrative but potentially riskier UK assets such as equities, early-stage companies and infrastructure.< /p>

The announcement is also expected to include proposals to consolidate fragmented assets. Britain's pension regime is the same as Australia and Canada.

Mr Hunt is said to be «taking a close look» at the Tony Blair Institute's calls to combine thousands of defined benefit pension schemes to create superfunds capable of investing hundreds of billions dollars.

Small pension schemes are shrinking

The final version of his plans will be laid out in his fall statement later this year.

It comes as Mr Hunt faces growing pressure to overhaul the pension industry amid criticism that over-cautious funds are costing retirees into the thousands of pounds because they are not taking on enough risk.

The chancellor also hopes £4.6 trillion investment from the UK pension industry will help boost economic growth as the country faces a rapid rising inflation.

While his reforms are meant to give savers more choice in their investments, the chancellor is not proposing to control what pension funds invest.

The Treasury said: retirees by increasing investment in the UK's fastest growing sectors. It will also unlock billions for our most cutting-edge businesses and ensure they have access to the funding they need to expand and list in the UK.”