Two-thirds of industry respondents or 66 per cent have been unhappy with the direction of pensions policy in the past six months, up from 61 per cent last year, according to the Pensions Management Institute (PMI).
According to PMI’s Pulse Survey, the industry has a negative six-month outlook, with 76 per cent of respondents expressing pessimism about the future of policies. The Labour Party’s lack of transparency regarding its plans for pension policy in the event of its victory in the next election raises concerns.
Furthermore, 53 per cent question if The Pensions Regulator is focusing on the appropriate areas, pointing to possible problems including a lack of capacity and political interference.
Only 31 per cent of participants believe that the Government’s Mansion House Reforms will be successful. More than six in ten or 61 per cent don’t think the adjustments will boost investment in productive assets in the UK as planned.
Additionally, just 31 per cent of respondents think that the changes will have sufficient bipartisan support to be completely enacted during an election year. As a result, only 43 per cent of respondents think the changes will be included in UK pension law.
Pensions Management Institute president Robert Wakefield says: “Pensions have been close to the top of the Chancellor’s agenda over the past six months as the Government looks to deliver its Mansions House Reforms as well as other new initiatives such as its pot-for-life programme and pensions dashboard.
“Understandably, the substantial regulatory reforms have left many feeling frustrated at the lack of clear direction in pensions policy. The influx of policies makes it look like the Government is throwing up ideas, hoping some may be a success without having a long-term plan with industry support.
“There are also concerns that too many pension reforms are happening at the same time without the required resources being available in the industry. Our research shows that the industry is increasingly sceptical that many of these changes will now be effectively implemented due to a potential lack of cross-party support. Many also want more clarity from the Labour Party, which may be in Government in the next six months, on any changes it plans to make to pensions policy.”