....pensions overhaul with rumours of Canada style reform

RNV

We are not done yet....

Rachel Reeves expected to lay out pensions overhaul with rumours of Canada style reform

[Deleted User]

It is a rumour but the willingness of private funds to invest in the UK is down to UK businesses being able to invest in their business model and become a success; a government giving them incentives to do so would be a good start, perhaps there is something along those lines forthcoming?  NI on business employees was a shot in the foot in that respect.

poseidon1

Ones need to understand where and how Canadian pension schemes invest, to get a sense as to whether UK schemes following the Canadian model would be beneficial to the wider UK economy.

At this time, Canadian pension funds invest around 73% of their collective funds in foreign assets. This is one of the highest percentage in the world. Canadian schemes have taken this approach to reduce risk and increase retirement income  for their members, which should be the primary mandate of any scheme above all else.

  Worth noting in this regard  that Canadian pension schemes are major investors in UK infrastructure and commercial property!

Of the 27% invested domestically in Canadian this is largely in bonds. Only 7%  of their infrastructure investments are domestic.

Therefore based on theses numbers, I can't see what the Chancellor will learn from the Canadians, which could prove an effective template to encourage UK schemes to be more domestically focused, but maybe there is a nuance I am missing?

Universidad

poseidon1 said:.

At this time, Canadian pension funds invest around 73% of their collective funds in foreign assets... 
  Worth noting in this regard  that Canadian pension schemes are major investors in UK infrastructure and commercial property!

A Canadian pension fund (OMERS) is the only entity to own a greater share of Thames Water than USS. Between them they own over half the company. USS have lost hundreds of millions in share value already, and AFAIK never recieved a dividend. 

Grumpy_chap

Universidad said:

A Canadian pension fund (OMERS) is the only entity to own a greater share of Thames Water than USS. Between them they own over half the company. USS have lost hundreds of millions in share value already, and AFAIK never recieved a dividend. 

Thames Water is not a good example because of the "alternative" means of extracting return that the shareholders have concocted rather than dividends.  This was good for short term publicity "oh look, aren't we being wonderful and altruistic by not taking a dividend" but the pack of cards is starting to look weak.

ManMadeWays

No Inheritance Tax in Canada.

Perhaps she can learn from that.

But I doubt it.