Rachel Reeves's latest pension gamble could put retirees' savings at risk
Shadow chancellor's plan to raid pension funds for 'green' investment branded 'reckless' by experts
Reeves has proposed allowing pension funds to invest up to 20% of their assets in 'green' infrastructure and renewable energy projects.
But critics say the move is too risky and could put retirees' savings at risk. They argue that pension funds should be focused on providing a secure income for retirees, not on funding risky investments. Reeves's plan would allow pension funds to invest in a wider range of assets, including infrastructure, renewable energy, and private equity. This could potentially lead to higher returns for pensioners, but it also comes with increased risk.Pension funds are typically invested in a mix of assets, including stocks, bonds, and property. This diversification helps to reduce risk and ensure that pensioners have a secure income. However, investing in riskier assets could lead to losses, which could put retirees' savings at risk.
Critics of Reeves's plan say that it is too risky and could put retirees' savings at risk. They argue that pension funds should be focused on providing a secure income for retirees, not on funding risky investments.
The government has said that it will consult on Reeves's proposals before making a final decision. However, the plans have already been met with criticism from the pensions industry.
The National Association of Pension Funds (NAPF) has said that the plans are "unworkable" and could put retirees' savings at risk. The NAPF has also said that the plans could lead to higher costs for pensioners.
The government has said that it is committed to protecting pensioners' savings. However, the NAPF has said that the plans could put retirees' savings at risk.
