As the UK government embarks on its reforms of the UK pensions industry, the leader of the largest private sector pension scheme cautioning against excessive government intervention. Carol Young, CEO of the £73 billion Universities Superannuation Scheme (USS), supports new disclosure requirements but expresses concern over potential government directives on fund allocation. These remarks coincide with Treasury plans for pension reforms aimed at stimulating the economy by leveraging retirement savings for domestic investment. With Chancellor Jeremy Hunt intending to announce measures in the Budget to improve returns for savers and promote investment in British businesses, including barring underperforming pension funds from acquiring new business and facilitating fundraising for unlisted firms, Rudy Khaitan, Managing Partner of the UK’s leading later-life lending specialist, Senior Capital, argues that by adopting alternative schemes such as fixed income allocations, pension funds’ risks can be reduced by providing a source of long-term income that can decrease the reliance on debt.
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