Pensions and growth: a paper by the PLSA on supporting pension investment in UK growth

The PLSA has identified a range of new solutions and policy levers to attract greater pension fund investment in assets that have the potential to drive growth in the UK economy.

Today UK pension funds invest almost £1 trillion in the UK through a mixture of UK shares, corporate bonds, government debt, and other asset classes. This investment generates the capital businesses need to expand their operations, hire more employees and develop new products and services. It also supports spending on infrastructure, renewable energy and social programmes.

However, over recent months there have been many public calls, from Government, stakeholders and the media, for pension funds to play a bigger role in providing additional capital to support growth in the UK economy, especially through increased direct investment in infrastructure, private markets and venture capital. Many commentators have suggested that the best way of achieving additional investment in UK growth assets is by undertaking radical and rapid consolidation of the pensions sector. We do not disagree that scale can have many advantages but, in our assessment, there are many quicker and simpler ways of achieving these objectives. 

In ‘Pensions & Growth: A Paper by the PLSA on Supporting Pension Investment in UK Growth’ we have identified a dozen ways to make UK assets more appealing to pension funds.

The PLSA is already working closely with Government on these important issues and stands ready to provide extra support as needed.