AThrough legislation requiring auto-enrolment and providing tax incentives
BBy taking direct control of private pension investment decisions
CBy guaranteeing fixed returns on pension investments
DBy directing gilt issuance solely toward pension funds
EBy overseeing corporate takeover and merger activity
✓ Correct answer: A. Through legislation requiring auto-enrolment and providing tax incentivesGovernment reforms including mandatory auto-enrolment and tax relief on contributions determine how both employers and individuals plan and fund retirement.
Why the other options are incorrect:
• By taking direct control of private pension investment decisions: Private pension investments are the responsibility of trustees and pension providers, not the Government.
• By guaranteeing fixed returns on pension investments: Investment returns are not underwritten by the Government; they fluctuate with market performance.
• By directing gilt issuance solely toward pension funds: Government gilts are available to the full range of investors, not reserved for pension funds alone.
• By overseeing corporate takeover and merger activity: Oversight of mergers and acquisitions falls to the Competition and Markets Authority, not pension policy makers.
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