Anthony Hilton: Byrne’s right on pension funds – bigger is better
Saturday 25 May 2013
To Birmingham for an interesting speech from Liam Byrne – he who as a member of the Labour Government Treasury team famously left the note after the 2010 election warning the incoming Chancellor there was no money left.
Mr Byrne's thesis was that we have far too many small pension schemes and rules should be introduced to force them to merge into larger, more efficient units.
In this he is surely correct. In small schemes, costs and charges eat up the bulk of the investment returns which mean members get lower pensions than they should. The country also suffers.
In Canada, the Netherlands and elsewhere, huge pension funds finance big, long-term housing and infrastructure projects which deliver huge, economic benefit.
Here, most pension funds are too small to take such big risks so they miss out on the big returns, the country does not get the infrastructure and the pensioners get short changed.
- 1 Marijuana use by teenagers does not result in a lower IQ or worse exam results, study finds
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 NHS staff banned from drinking tea or coffee on the job because it looks like they're not working hard enough
Renee Zellweger on plastic surgery: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Kim Jong-un 'purge': Six North Korea officials missing for weeks 'may have been executed'
Diwali: What is the festival of lights – and how is it celebrated around the world?
Nathan Cirillo: Final pictures emerge of soldier moments before he was shot dead by Ottowa gunman
Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
iJobs Money & Business
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...