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Pensions reform: new risks

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Chancellor Jeremy Hunt, speaking at the International Monetary Fund meeting on 13 April 2023, said that the British pension system needs reform to ensure pensioners receive higher returns.

Hunt wants Britain’s pensions industry to provide investment into high-growth British industries. The chancellor cited countries such as Australia and Canada, which allow pension funds “to invest in unlisted and potentially higher growth vehicles...”

Asked if pension schemes should be forced to invest in the stock market as opposed to lower risk bonds, Hunt said he preferred to give financial institutions “…complete freedom to invest where they think they will get the best returns…”

Debate about this possible reform has up to now been confined mainly to those who are close to the speculative sections of finance capital. Workers whose pensions may be affected will be concerned about the idea of increased risk and using pension funds for speculation.

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