Pension Savings: Investment Returns

That is absolutely the right question. We all understandably hear calls for higher rates of pension saving, but the prior question is this: how do we ensure that savers get the best bang for their buck for every penny they save? The forthcoming pension schemes Bill will help make that happen, with bigger pension schemes and fewer small pension pots, driving down costs and driving up saving rates for pensioners.

Can the Minister share with me, as chair of the reconstituted all-party parliamentary group on pensions and growth, any plans for how counties that are outside mayoral authorities, such as Staffordshire, could benefit from pension reforms to encourage more investment in the UK, to support infrastructure, jobs and local regeneration?

I certainly can. Our reforms to the local government pension scheme will support local investment in every part of England and Wales. Our defence spending plans will be felt on the ground—total defence spending in the west midlands totals £1.6 billion a year. We are building reservoirs again, including one in the west midlands. We are also getting the country trading once again, including businesses in Tamworth, where PI-KEM, a specialist chemical supplier, recently won a major export order, with £100,000 in UK Export Finance support. Britain, and Tamworth, are open for business.

I want to ask about 18-year-olds, who are just starting off, being encouraged to take out a pension. Whenever I was 18, my mother took me down to see John Thompson, the pensions man in Ballywalter, and he said, “You’re going to take a pension.” I asked, “What for, Mum?” She said, “You’re taking a pension.” So I took the pension. Does the Minister agree that what everybody really needs is somebody like my mother to encourage them to take a pension?

I did not know where that was going, but I know that I speak for everybody in the House when I say that the whole country needs someone like the hon. Gentleman’s mother.