The new Labour government in the UK is already reviewing the pension system to look for ways to move more investment into productive assets to boost economic growth and improve retirement incomes.
Keir Starmer, the UK prime minister, has made combating the country’s anemic growth a central goal of his government since winning the July 4 election.
As part of the first package of proposed laws, the UK government last week announced a new pensions bill to encourage the consolidation of smaller pension plans and broaden investment strategies.
“The review we are announcing is the latest in a series of reforms to unlock growth, boost investment and generate savings for retirees,” Finance Minister Rachel Reeves said in a statement. “I am determined to fix the foundations of our economy.”
The Treasury said the defined contribution schemes were expected to manage around £800bn of assets by the end of the decade, and that increasing their investment in productive assets would help grow the economy and build infrastructure.
The government said its review would look at how to increase investment potential in the £360bn Local Government Pension Scheme (LGPS), which manages the savings of local authority workers across the UK.
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