Pension changes ‘must benefit smaller firms’

Small businesses could benefit from increased access to investment, under proposed changes to pension schemes.

The Government has set out plans to encourage defined contribution pension schemes to consider a wider range of investments, including small businesses.

Larger schemes, such as those with 5,000 or more members, could be required to report their policy on this type of investment.

Mike Cherry, chairman of the Federation of Small Businesses, praised the proposals for "demanding transparency from big pension schemes" regarding their support for smaller businesses.

However, he added that more clarity is needed from the Government about its plans to ensure investment goes towards the businesses that will benefit the most from it.

Cherry said:

"The Government needs to outline how it intends to bring the thousands of small firms that are in need of investment together with pension scheme trustees.

"We must avoid a situation where these plans end up benefitting projects and firms that are already comfortable, rather than the high-performing small business owners who are absorbed in making their firms a success."

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