Savings, Investment and the Role of Pension Funds

Government policy aimed at promoting savings and investments was the focal point of a roundtable discussion hosted at NIESR in December 2023 with Andrew Smithers and representatives from the financial services. In response to the identified concerns, Andrew Smithers has put together an interim paper presenting his concerns and recommendations, laying the groundwork for a broader discussion on these critical issues. At this event, Andrew will explore some of the questions raised at the roundtable, as well as some potential paths to solutions.

Amongst the topics in question are the following:

• Should savings for retirement be encouraged? If so, is enough being done? If not, how could the government do more without additional costs?
• Should pension funds be encouraged to help the financing infrastructure, startups or second stage finance?
• Has the regulation of pension funds led to relative weakness in UK share prices? If so, has this damaged the UK stock exchange? Can this be rectified without government cost?
• As equities give higher long-term returns than debt instruments, lengthening the time horizon of pension funds should benefit retirees. Is this desirable, can it be done and, if so, how?

These issues are not only of national interest but also hold specific relevance to various sectors in the financial services industry. As we progress with this project, the aim is to foster a collaborative approach to policy-making that serves both individual interests and the broader economic landscape.