UK pension funds invest almost £1trn in the UK through a mixture of asset classes. But there have been numerous calls for funds to play a bigger role in providing capital to support UK growth.

Some suggest the best way to achieve additional investment is by undertaking radical and rapid consolidation of the pensions sector. Scale has its advantages but, there are quicker and simpler ways.

Our Pensions and Growth paper identifies multiple opportunities to encourage pension funds to invest further in UK growth, which do not restrict pension schemes’ ability to direct the investment of members’ savings.

Chief among them is establishing a rich and continuous pipeline of enterprises needing investment for providers to bring to market and investors to choose from.

The government should also press ahead with auto-enrolment (AE) reforms – removing the lower earnings limit, starting AE at age 18 and gradually increasing contributions.

Only by increasing the flow of new assets into DC can we hope to provide more capital. The PLSA is asking the government for policy certainty and to set out a clear plan for the future of the UK economy.

Our proposals build on current government initiatives and address the needs of the pensions landscape as it is now.

We risk unintended consequences by trying to radically reshape the market or water down the fiduciary duty that is fundamental to our system.

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