Pensioners should get better returns on their investment, Hunt warns
The TelegraphJeremy Hunt has warned that workers are not getting good enough returns from their pension investments and vowed to overhaul Britain's retirement regime. He revealed that Sir Jonathan Symonds, chairman of the drugmaker GlaxoSmithKline, is providing informal advice on the best way to get higher returns on the hundreds of billions of pounds currently invested in defined contribution pension schemes. These schemes, most common in the private sector, will provide the “biggest opportunities to unlock investment into high growth British industries”, Mr Hunt added. Asked if pension schemes should be forced to invest in the stock market – as opposed to safer but less rewarding bonds – Mr Hunt said: “It's not something I would instinctively be comfortable with, because I think one of the strengths of the City is that we give financial institutions complete freedom to invest where they think they will get the best returns for the people whose money they're looking after. My concern is that pensioners and future pensioners are not getting the returns that they could expect.” The Chancellor also suggested that he would not back unlimited deposit guarantees for savers in the wake of the collapse of Silicon Valley Bank in the US because of the risk of “moral hazard”.
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