Off the Record: Chris Eastwood, CEO, Penfold

Why It Matters

The interview highlights a policy crossroads: balancing state objectives with fiduciary duty, which will shape investor confidence and the flow of pension capital into the UK economy.

Key Takeaways

• Trust in pensions hinges on fiduciary duty of professional trustees
• Government should set guardrails, not dictate investment choices
• Boosting savings rates is more critical than directing capital
• Attractive UK assets can align trustee interests with national growth
• Constant policy tinkering erodes confidence and long‑term saving behavior

Pulse Analysis

The core of the UK pensions market is a simple yet delicate contract: savers hand over their money to trustees who promise to act in their best interests over decades. Since the shift to defined‑contribution schemes, the system’s health depends on two pillars—robust fiduciary duty and the confidence that rules won’t change overnight. When that trust frays, individuals either under‑save or shift to short‑term products, jeopardising retirement security.

Government’s role, according to Eastwood, is to craft a stable framework that encourages participation without over‑reaching into investment decisions. The recently passed Pension Schemes Bill introduces guardrails that prevent political mandates from dictating asset allocation, while maintaining tax incentives and contribution minimums that have driven auto‑enrolment success. By focusing on incentives—such as fee caps, rebates, or expanded charge budgets—policymakers can make UK‑focused assets more appealing, allowing market forces to channel capital where it naturally belongs.

If the balance is struck, pension funds can become a powerful engine for domestic growth, funding start‑ups and infrastructure without compromising returns. Eastwood stresses that aligning trustee objectives with national priorities is best achieved by improving risk‑adjusted returns, not by imposing mandates that could dilute performance. Stable, transparent rules combined with a renewed push to raise contribution rates will reinforce saver confidence, ensuring the pension system remains a reliable source of long‑term capital for both individuals and the broader economy.