Fragmented system limits pension investment opportunities, says Pensions UK

Pension schemes face a fragmented system with unclear coordination and limited routes to invest in UK growth assets at scale, according to the latest report from Pensions UK.

The report, ‘From commitment to deployment: Scaling pension fund investment in the UK economy’, set out the practical steps needed to mobilise pension capital, including investable structures, better coordination across public bodies, and regulation that supports long-term value.

The report found that more investment in UK growth relies on creating pension-grade opportunities with clear routes to market and suitable risk-return prospects. 

It mapped the UK pension investment system, examined four key public finance institutions, and shared examples from the private sector.

A year after the Mansion House Accord, progress has been made but the system remains fragmented. 

Practical barriers such as insufficient risk-adjusted returns, lack of suitable opportunities, and policy uncertainty were highlighted. 

The report called for improved pipeline visibility, risk-sharing, and regulation focused on value.

Zoe Alexander, executive director of policy and advocacy at Pensions UK, said: “Pension schemes are already major investors in the UK, supporting economic growth – but more practical, co-ordinated action by Government and agencies is needed to support their efforts to keep scaling those investments.