Just over two thirds (67 per cent) of pension professionals think there will be less than 40 Local Government Pension Scheme (LGPS) funds in England and Wales by 2035, although industry experts have suggested that further clarity is needed on the objectives of this consolidation.

The poll, taken at the Pensions and Lifetime Savings Association (PLSA) Investment Conference 2025, revealed that 25 per cent thought that there would still be more than 40 LGPS funds, although just 5 per cent thought that there would still by 87 LGPS funds.

This comes after Pensions Minister, Torsten Bell, confirmed that the government would be sticking with the March 2026 deadline for its LGPS pooling work, with plans to meet with each of the eight funds to inform this work.

However, Border to Coast Pensions Partnership CEO, Rachel Elwell, said that central government clarity is still needed on what the government wants from LGPS, and what they want the journey to pooling to achieve.

So I think we are all waiting to hear from the Minister, but our calls next week as Paul's to tell us what it is that he's wanting, that I I for one, would really welcome real clarity about what it is that government would like us all together to achieve.

This was one of three key learnings from international players highlighted by Elwell, alongside the importance of governance and the need for collaboration and a partnership.

"There's been huge amounts of work done in in academia over the past three decades or so looking at this idea of a governance premium so we can be really clear about people's roles in the system.

"It also needs to be a partnership. Any system is only as strong as it's the weakest bit of it and really making sure that we all feel a vested interest in making sure that the system is working - that we're having the difficult conversations where maybe it isn't working how we all want it to.

That we are able to do that is really important part of making that system work in the longer term.

Greater Manchester Pension Fund assistant executive director of pensions, Paddy Dowdall, said that he agreed with all of these points, suggesting that there are two potential outcomes that could show success - scale and the direct nature of investments.

Elwell also argued that the key thing is to ensure that pooling doesn't change the fundamental nature of the LGPS ecosystem, emphasising the benefits of the existing system.

"I think when we're talking about the changes that might come to the LGPS, it's really important to recognise that we will be building on an incredibly successful system," she continued.

"The vast majority of the partner are over 100 per cent funded. So the big question for me is how do we make sure that we recognise the strengths that are there and continue to work within that system so that it remains resilient and sustainable in the future."

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