Independent financial advisers (IFA) are “broadly supportive” of pension reforms being included in the Mansion House speech this evening (14 November), research from Opinium has revealed.

Chancellor, Rachel Reeves, is set to deliver her Mansion House speech later today, with the Treasury confirming that it will include proposals to introduce pension ‘megafunds’ through consolidating defined contribution (DC) schemes and pooling assets from Local Government Pension Scheme (LGPS) authorities.

The government said that these megafunds could use their scale to invest in assets that have higher growth potential, which it estimated could deliver around £80bn of investment in new businesses and infrastructure.

It is widely anticipated that Reeves will use the speech to present further details about the second phase of the government’s Pensions Review, as well as reforms to how defined benefit (DB) and DC schemes can be used to boost investment in UK assets.

Opinium surveyed 200 IFAs in the UK, and 62 per cent said they would support investing public sector worker pension contributions in productive assets.

Around one in seven (15 per cent) stated they would oppose this move, while 23 per cent did not know whether they would support it.

Meanwhile, half (50 per cent) of IFAs would support greater pension investment into UK assets, with a third (33 per cent) opposed to this change and 18 per cent unsure.

Opinium also asked the IFAs whether they would support moving LGPS assets into a single pool.

Half (50 per cent) said they would support the change, while 17 per cent would be against it and 33 per cent did not know whether they would support moving LGPS assets into one pool.

Commenting on the findings, Opinium global head of financial services, Alexa Nightingale, said: “IFAs are broadly supportive of reforms to the UK pension system, recognising the need for changes that address the long-term sustainability and adaptability to evolving economic conditions.

“The outcomes of these policy directions will impact the advice they provide and the strategies they recommend to clients, so they will be tuning in when Rachel Reeves takes to the lectern.”

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