The Pensions and Lifetime Savings Association (PLSA) has presented the UK government with recommendations to help to direct a greater portion of retirement savings capital into promising growth areas. In a new report, the PLSA expanded on work published last year, following up on measures the UK can implement to ensure a robust pipeline of investible opportunities. The new research identified a funding gap amounting to tens of billions of pounds across four key areas – climate change, infrastructure, life sciences and AI, and social and community growth funds – which require the greatest level of investment. The report also highlighted some of the actions needed to attract pension fund investment to key projects across a variety of sectors. The PLSA called on the UK government to provide policy and regulatory certainty, offer targeted fiscal incentives, lead and collaborate on AI and net zero at the international scale, and continue to work closely with regulators and others to tailor the right approach. Meanwhile, it suggested trustees and pension funds should further develop investment strategies and encourage their advisers and consultants to further consider growth assets. “The UK has considerable need of greater investment to achieve the government’s goals on growth and the transition to net zero,” said Nigel Peaple, Director of Policy and Advocacy at the PLSA. “Pension funds have an important part to play in achieving greater investment in the UK, where this is consistent with achieving the right returns for pension savers.”
