29 May 2025 – The PMI welcomes the Government’s Final Report on the Pension Investment Review. The PMI acknowledges that larger default funds may lead to better outcomes either through greater economies of scale or just being large enough to take advantage of the investment opportunities that require greater scale.

The PMI welcomes the clarity around the approach to addressing fragmentation.  There is a particular  urgency to get  older contract-based schemes sorted quickly, and the PMI looks forward to seeing the details in the forthcoming Pension Schemes Bill. 

It’s also interesting to see the Government including a reserve power to set binding asset allocation targets and again we look forward to seeing the details of this in the Pension Schemes Bill.  

Tim Box, Chair, PMI Policy and Public Affairs Working Group, said: “Whether greater scale means that investments would actually be directed into the UK remains to be seen. For those running UK pension schemes the ultimate responsibility is to act in the best interests of members. Pension funds will invest where opportunities align with long-term value and security. We look forward to seeing details of how the reserve power to set binding asset targets will work and the impact this will have on decision making.

Box went on to say: “The ambition in these proposals is large and the overall proposed timescales relatively short given the size of changes proposed. Beyond investment choices, practical implementation must be considered. Industry bandwidth to support consolidation and reform is finite, and sequencing matters.

“Rushing change risks confusing savers and undermining confidence in the system. Any reforms must be structured to ensure clarity, stability, and a smooth transition for members.”  

ENDS

Notes to Editors 

Media contacts: 

Smithfield  

Henry Conner    henry.conner@edelmansmithfield.com                +44 (0)7709 577 073 
Ged Brumby       ged.brumby@edelmansmithfield.com                  +44 (0)7540 412 301

About the Pensions Management Institute  

The PMI is the professional body which supports and develops the experts who run UK pension schemes by delivering exceptional thought leadership, comprehensive education, advanced training, and recognised qualifications in pension management. It has the broadest skills base of pensions professionals and trustees in the UK, with more than 7,600 members dedicated to establishing, maintaining, and advancing the highest levels of pensions knowledge.

PMI members are responsible for managing and advising some of the largest institutions in the world and taking key decisions on substantial financial matters. With well over £1 trillion invested in UK pensions, PMI members have a vital role to play in shaping the nation’s financial future. With 48 years of successful operation behind it, the PMI is an organisation at the cutting edge of pensions, committed to fostering industry collaboration and driving innovation to enhance retirement outcomes.

For full details of PMI’s qualifications, membership grades, and ongoing support services visit www.pensions-pmi.org.uk.