Ed Jervis, Life & Pensions Leader at EY, comments on the Chancellor’s announcement on adjusting the pensions charge cap:
“A consultation on adjusting the pensions charge cap will be welcomed by the pensions industry, as it will enable defined contribution pension schemes to invest in a broader range of assets and ensure they’re able to offer the highest possible return for savers. In addition, the draft regulation that the Department for Work and Pensions is set to introduce will make it easier for pension providers to offer savers enhanced investment opportunities within the charge cap by smoothing certain performance fees over a multi-year period.
“It is positive that the Chancellor recognises the important role that pension providers, as long-term investors, can play in supporting the UK’s economic recovery. UK pensions have a vital role to play in regenerating urban centres and backing infrastructure investment across the country, and any move that extends this role is likely to benefit both pension savers and the country at large.”