2023 Pension Reforms - Default plans

rjmachin

I have been on holiday for a few weeks and just got back and watched a YouTube video by Pete Matthew at Meaningful Money.

The video suggest that the chancellor has agreed with some pension providers to have their default funds invest in some more UK startup high risk investments and that may lead to higher fees.

The solution was to choose an investment in the pension provider options instead of using the default so that it does not automatically start investing in these higher risk investments.

My workplace pension does not seem to be included in the list of members to join in the reforms, but they could join at some point.

My workplace pension is with: The Peoples Pension / The Peoples Partnership / B&CE

I am currently 42 and have set the retirement age to 68 so that no lifestyling takes place for some time to come.

I am in the "Balanced Profile", which invests in the "B&CE GI (up to 85% shares)" fund.

I have the option to "Self-Select", and then choose a percentage against each of the funds, so could put "B&CE GI (up to 85% shares)" to 100% to keep the current setting.

Will doing this stop the reforms mentioned above and also turn off the lifestyling?

molerat

There was a thread a while back on this, not something I needed to pay much attention to but might be something in there for you.

https://forums.moneysavingexpert.com/discussion/6461788/proposed-pension-changes-by-jeremy-hunt-to-invest-in-uk-start-ups

Albermarle

The video suggest that the chancellor has agreed with some pension providers to have maximum 5% of  their default funds invest in some more UK startup high risk investments and that may lead to higher fees.

See in bold.