The UK Market -Shares owned by..?

[77ss]

Wasn't it reform by Labour that led to the current pensions regime, and the decline of defined benefit schemes?

The big damage was done by the Pensions Act 1995, passed by the Conservatives in response to several major pension scheme frauds (e.g. Maxwell). Things such as restricting self-investment, improving administration and making sure that companies paid into the scheme on time (holding back contributions to help with cashflow was popular).....

I goes back even further than that.

[i]The 1986 Financial Services Act introduced personal pensions, made changes to contracting out and stopped employers forcing employees to join an occupational pension scheme[/i]

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https://www.professionalpensions.com/fe ... d-pensions

I suspect that these changes kick-started the gradual demise of final salary schemes. I note that auto-enrolment was reintroduced about 30years later.

Not everybody is equipped to make sensible financial choices.

[Alaric]

I suspect that these changes kick-started the gradual demise of final salary schemes.

The growth of more flexible working patterns, in other words more frequent job changes demonstrated that in general final salary schemes short changed leavers in comparison to an equivalent employee on the same salary and years of service who continued in the scheme.

[Nimrod103]

I suspect that these changes kick-started the gradual demise of final salary schemes.

The growth of more flexible working patterns, in other words more frequent job changes demonstrated that in general final salary schemes short changed leavers in comparison to an equivalent employee on the same salary and years of service who continued in the scheme.

All true to a certain extent, but IMHO the big change came with most private sector companies abandoning final salary schemes and replacing them with defined contribution schemes where the company contributions have been much lower than before. I look at the abysmal pension schemes which my children are in, which are so much poorer than mine. The changes may have been desinged to protect early leavers, but the real winners were those who stayed for a long time in final salary schemes which continued in operation - which mainly applies in the public sector.

[GeoffF100]

There has been a (very sensible) world wide trend towards international diversification. UK pension funds are no longer given tax relief for investing in the UK market (Advance Corporation Tax and then the 10% tax credit). If we want more money to be invested here, the best way to do that is to make it a more attractive place to invest.