Former pensions minister Steve Webb and ex‑Institute for Fiscal Studies head Paul Johnson have warned Labour not to interfere with retirement savings.
In a report, they urge the Government to ‘beware unwise interventions’ as it pushes pension schemes to support economic growth.
Ministers want backstop powers – currently in a Bill going through Parliament – that would let them force schemes to invest in areas they deem beneficial.
Johnson said: ‘Governments should act with great humility for fear of reducing the value of people’s pensions.’
Interference: Ministers want backstop powers that would let them force schemes to invest in areas they deem beneficial
Webb, a partner at pension consultants LCP, said that ministers should not override trustee decisions ‘to impose what it thinks is the right answer’.
The warnings follow the Mansion House Accord, where 17 firms pledged to invest 10 pension in private markets. A Government spokesman said reforms would unlock billions and boost jobs.
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