The Liberal Democrats have published their 2024 manifesto, announcing plans to develop measures to end the gender pensions gap, improve the state pension system, and require pension funds and managers to show their portfolio investments are consistent with the Paris Agreement.

The manifesto said that the Liberal Democrats would look to “give everyone the chance to enjoy a decent retirement” with several pension-related policies covering both workplace and state pensions.

In particular, the party committed to developing measures to end the gender pension gap in private pensions and ensure working-age carers can save properly for retirement.

It also said that it would look to review rules concerning pensions so that those in the gig economy don’t lose out, and portability between roles is protected.

Potential pension policy changes were also highlighted in relation to climate change, as the party said that it would look to require pension funds and managers to show that their portfolio investments are consistent with the Paris Agreement.

Providing more detail on plans to address climate change risks, the Liberal Democrats said that they would also look to create new powers for regulators to act if banks and other investors are not managing climate risks properly.

In addition to workplace pensions, the manifesto outlined plans to improve the state pension system by investing in helplines to ensure quicker responses to queries and resolution of underpayments, as well as reiterating its commitment to the state pension triple lock.

In the manifesto, the party said that it would also look to end the “scandal” of lost top-up payments by overhauling the processing system and providing proper receipts.

Commenting in response to the manifesto, Pensions and Lifetime Savings Association (PLSA) director of policy and advocacy, Nigel Peaple, said: “The Liberal Democrats' election manifesto includes a number of welcome initiatives to address inadequate pension saving.

"Over half of savers are unlikely to achieve commonly used pension adequacy targets so these measures are needed. Their proposals to provide guidance and access to safe retirement products will also be of value.

“They have also put forward a number of proposals related to pension investments, notably one to encourage climate-friendly investments and one proposing an expanded role for the British Business Bank. The pensions sector is supportive of these initiatives provided such investment is also in the interest of scheme members."

However, Peaple expressed disappointment at the omission of broader auto-enrolment reforms, noting that "the manifesto was silent on the vital reforms needed to improve our automatic enrolment system, the cornerstone of retirement income for most retirees".

"By not proposing gradually to increase pension contribution levels from 8 per cent to 12 per cent over the next decade, many people working today will miss out on a better pension in retirement," he said.

Commenting specifically on the plans to encourage greater climate disclosures, Broadstone investment consultant, Matthew Downey, added: “Pension schemes with assets over £1bn have had to publish climate reports since 2022 and the political direction of travel looks likely to introduce further reporting requirements to stimulate ever greater sustainability.

"It is clear that pension fund trustees should be preparing for this eventuality over the coming years by taking early, proactive steps to ensure their processes are up to speed.”

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