The UK has the largest pensions sector in the EU. The PLSA’s members provide pensions for 20 million workers, savers and pensioners. Auto-enrolment has brought 7 million more people into pension saving – a great British success story that many other EU Member States are looking to emulate. UK pension funds provide important capital flows to the UK economy, as well as to those of the EU27.
It is therefore important to British savers, and to the employers supporting those pension funds, that the UK economy gets a good Brexit.
The PLSA is engaging with the Government and other key policy-makers to ensure that pension schemes’ concerns are fully reflected in the Government’s approach to the Brexit negotiations.
What does success look like?
From the pension scheme perspective, a successful outcome from the Brexit negotiations would include the following:
- for a strong economy: replication of both the current UK-EU framework for free trade in goods and existing EU free trade agreements with third countries. Also, a new immigration policy that continues to allow flows of talent and labour from the EU for the good of the wider economy in general and pension schemes in particular.
- for the right regulation: the maximum possible access to the Single Market in services – while also exempting pension schemes that operate only in the UK from damaging EU pensions regulation, such as a potential solvency-based regime for pension funds.
- for strong financial services: continuation of the passporting regime so that pension funds can invest efficiently.