By GB News (Politics) | Created at 2024-11-14 18:28:37 | Updated at 2024-11-24 12:15:27
1 week ago
The UK Government plans to create pension megafunds that could unlock billions of pounds for infrastructure investment, Pensions Minister Emma Reynolds has told GB News.
The initiative aims to consolidate existing pension schemes into larger funds capable of making substantial investments in major projects across Britain.
The move follows successful models established in Australia and Canada, where large-scale pension funds have already demonstrated significant success in infrastructure investment.
Reynolds highlighted how the UK is lagging behind international counterparts in pension fund investments.
'New pension megafunds plan will unlock billions for investment in infrastructure,' says minister
GB News
"As the Pensions Minister, let me be absolutely clear that it is these two objectives that I'm holding in my mind all the time, which is boosting investment in our own economy, but at the same time boosting pension savers at retirement incomes."
She described it as a "win-win situation" where larger funds would have better in-house expertise to make investments across a broader range of assets.
The consolidation aims to deliver improved returns for pension savers while strengthening the UK economy.
The pension megafunds are used in Canada
Getty
To address practical implementation concerns, Reynolds pointed to the creation of the National Wealth Fund.
The Government is also implementing ambitious planning reforms and establishing Skills England to ensure a robust pipeline of projects.
She explained: "There's the sort of demand side, which is making sure we get more pension investment into our own economy.
"If Canadian and Australian pension funds can find opportunities in the UK, it shouldn't be beyond our pension funds to do the same."
