‘There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction.’ – John F. Kennedy.
From Pensions to Prosperity is an attempt to help the new Government re-frame the discussions around pensions and the estimated £6 trillion sitting in UK retirement savings. At present, these funds are pretty unproductive and not particularly helpful to the UK economy or the quality of life of its citizens. ‘Quick fixes’ have been sought after rather than an understanding of what the overarching objectives of the pensions system should be as a whole. Many different and interrelated polices will be needed to put things right – this is not a policy area where further tinkering will do the trick.
No UK government can achieve sustained economic growth and prosperity without effectively utilizing retirement savings for productive investment in the economy. The system has been degraded to the extent that it can no longer even guarantee the financial benefits that members should rightfully expect. Pensioners prioritize quality of life post-retirement over money, yet financialisation of the pensions system has decreased financial security for pensioners.
Retirement savings have a much broader and more important role to play in the UK political economy than being a mere financial service. Expanding the role for pension funds boosts economic growth, returns, and inflows of retirement contributions, creating a cycle of benefits for funds and their members. In a fiscally constrained environment facing demographic challenges, unlocking the economic potential of retirement savings is a crucial political priority for any government aiming to promote widespread prosperity and fulfill obligations to retirees.
This pamphlet is a compelling contribution to an urgently needed debate.
