Pensions Minister pledges UK investment from pension schemes

26 March 2025

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The government wants to shake up pension investments to boost the UK economy —  and it seems many UK savers are on board. 

Pensions Minister Torsten Bell recently told an industry conference in Edinburgh that Britain needs to start investing in its own future again. He highlighted how large UK pension schemes could be doing more to put money into the UK economy, much like other countries do.

For example, he said that UK defined contribution pension funds currently invest just 3% in infrastructure and only 0.5% in private equity. That’s much lower than places like Canada, where infrastructure makes up 11% of pension investments, or Australia, where private equity gets a 5% share. 

Bell said: “Every percentage point or part of a percentage point matters, where this investment can deliver not only returns for savers, but also contribute to economic growth.”

Research finds 53% of savers prefer UK investments

Many UK savers feel the same way. Research from the Pensions and Lifetime Savings Association (PLSA) found that 53% of savers would prefer their pension money to be invested in the UK. 37% want UK investments as long as they offer similar returns to other investments, while 16% would prioritise UK investments even if they delivered slightly lower returns.

Zoe Alexander, director of policy and advocacy at the PLSA, said it’s clear that UK investments are a growing priority for savers, and pension schemes are actively looking at ways to invest more in the UK while still delivering strong returns.

With the government pushing for more pension investment in British businesses and infrastructure, could this mean a better deal for both savers and the UK economy? Time will tell, but the momentum for change is certainly building.

Related reading:Most UK pension savers want their money to work for society

Keen to support UK investments?

If you’re still contributing to your pension fund and curious about where your pension savings are invested, start by checking your annual pension statement or logging into your provider’s online portal. Many pension schemes offer investment options, so if you’d like more of your money to support UK businesses and infrastructure, you can ask your provider about your choices. 

If you're in a workplace pension, your employer or pension administrator may also be able to guide you. Speaking to a financial adviser can help you understand the risks and rewards of different investment strategies, ensuring your pension works best for you while contributing to the UK economy.

Sources

Torsten Bell’s conference contribution. Pensions minister: ‘I spend my life defending some decisions’. FT Adviser. Accessed 17 March 2025.

PLSA found that 53% of savers would prefer their pension money to be invested in the UK: Half of pension savers prefer UK investment. FT Adviser. Accessed 17 March 2025.