UK Pensions moves on investments, good or bad

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Bronte

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There have been major moves in the UK on how pension pots can invest their money. As a person skeptical of any loosening of rules, and as someone who has seen too many institutions fail, am I wrong to conclude this is going to be a bad move, for the consumer.

theconversation.com

UK government wants to make pension pots bigger with riskier investments – but it faces big challenges

The potential gains may be great, but the risks of softer regulation are pretty big too.
theconversation.com theconversation.com

There are lovely 'words' there like 'invest more boldly' - is that not really to mean, more risky. With people's hard worked pension savings. As I'm not a pension expert, and as they are so wholly endorsed on AAM, is this a clever move by the UK government.
 
Politicians interfering in where pensions are invested is a terrible idea. It won't stop at 5%, once the principle of politicians being able to direct where pension funds are invested is accepted they will not be able to resist the temptation to further "invest" this giant pool of money into pet projects.

The point of pensions is to encourage people to save to provide for themselves in older age, reducing the burden on the State. We shouldn't forget that, people have to have confidence that it's worth their while saving decades in advance of when they will need it.
 
Bronte said:
More here:


In my uneducated eye, it's putting safe money, pension funds, into risky companies. In a bid to boost the economy. Is that a good thing to do, or is it a way to get at money, pension funds.
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Defined Benefit pension schemes are very very expensive for companies. Hence the move to give more options to stop them closing them. The real elephant in the room is Defined Contribution.
 
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