Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Chancellor’s Spring Budget Sparks Potential Surge in Pension Fund Investment

by March 12, 2024
March 12, 2024
Chancellor’s Spring Budget Sparks Potential Surge in Pension Fund Investment

Chancellor Jeremy Hunt’s proposed reforms, outlined in the Spring Budget, signal a potential surge in pension fund investment, particularly in UK-listed equities.

The focus on compelling pension funds to disclose the geographical breakdown of their assets aims to address the industry’s reluctance to support domestic companies. With the Treasury’s plan to require defined-contribution pension funds to disclose this information publicly, there is anticipation that this mandate could significantly increase investment in London-listed equities.

Broker Panmure Gordon suggests that this measure could have a greater impact than the proposed British ISA, which allows tax-free investment in UK assets. While the British ISA is expected to bring in £1-2 billion of inflows, the market has seen £13.5 billion of net outflows in the past year. Rudy Khaitan, Managing Partner of Senior Capital, emphasizes the importance of diversifying pension funds’ investments and reducing risks through alternative schemes such as fixed income allocations.

The proposed reforms also aim to reinstate previous income thresholds for high net-worth individuals to boost entrepreneurship and primarily target defined contribution schemes for greater disclosure of British investments by 2027. Khaitan suggests pooling different schemes together, with private equity funds helping to mitigate risks through alternative asset allocations, such as residential mortgage-backed securities (RMBS).

The UK equity release market has seen significant growth in recent years, with record activity driven by consumers feeling the financial impacts of inflationary pressures and rising interest rates. Equity release products are emerging as a vital lifeline for cash-strapped individuals, particularly in later life, offering financial stability amidst the cost-of-living crisis.

Khaitan emphasizes the potential benefits of equity release products for pension funds, highlighting their ability to cover liabilities and provide attractive risk-adjusted yields. With the average UK pension pot standing at £107,300, according to the Office of National Statistics (ONS), there has been a significant increase in people turning to equity release, indicating its importance in bolstering retirement incomes.

In summary, the proposed reforms present opportunities for pension funds to enhance returns and support economic growth. By diversifying investments and exploring alternative asset allocations such as equity release products, pension funds can align with their long-term objectives and navigate the evolving financial landscape more effectively.

Read more:
Chancellor’s Spring Budget Sparks Potential Surge in Pension Fund Investment

0
FacebookTwitterGoogle +Pinterest
previous post
FCA rule change drives Bitcoin price to hit new heights
next post
The government has made little progress on tackling UK’s e-waste nightmare

You may also like

Retail sales hit lowest level since 2021 lockdowns

November 20, 2023

UK government and King Charles’ safety concerns highlight...

November 13, 2023

The Business of Football Transfers

May 28, 2024

UK Households with No Work Reach 12-Year High...

May 30, 2024

Unveiling the Benefits of Toto Sites: Safeguarded Gambling...

July 2, 2023

How To Find The Top Commercial Insurance Broker

August 30, 2022

Developing a Strategic International Expansion Plan

May 2, 2024

How do you choose the right precious metals...

January 25, 2023

City bankers press Reeves to ease non-dom clampdown...

February 20, 2025

A Conversation With Ernest Reinhardt on Vision, Grit,...

May 20, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025
    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025
    • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

      June 28, 2025
    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025
    • Key GOP senator defects on crucial vote, imperiling Trump’s ‘big, beautiful bill’ in narrow majority

      June 28, 2025
    • Terror in Gaza: Hamas offers bounties to kill US and local aid workers, group says

      June 28, 2025

    Categories

    • Business (8,330)
    • Investing (2,081)
    • Politics (15,851)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved