In her Mansion House speech this evening, Chancellor Rachel Reeves is expected to further flesh out her ideas for steering pension funds, as major institutional investors, to invest in certain types of UK assets that the Government sees as key to boosting UK economic growth – as well as retirement outcomes for the UK’s pension savers.
In trying to try unlock up to £80bn in investment in assets like infrastructure and UK growth companies, the Government will introduce legislation that will merge 86 local government pension schemes into a ‘megafund’ that will manage assets worth about £500bn by 2030.
But there will also be an attempt to encourage the consolidation of private sector workplace schemes. Reeves has told the FT she is targeting a minimum size for multi-employer defined contribution pension schemes of £25bn to £50bn to ‘facilitate their consolidation into megafunds’.
Jason Hollands,…
