Can Britain’s Pension ‘Megafunds’ Boost the Economy?
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Low investment levels are one reason why the UK has endured more than a decade of subpar economic growth. So what could be more sensible than to divert more of the country’s pension savings into productive investments?
The way the new Labour government is going about this is to pool £1.3 trillion ($1.6 trillion) of the UK workforce’s retirement savings into a series of “megafunds.” By creating fewer and larger funds, Chancellor Rachel Reeves hopes to release more private capital to support infrastructure projects and startups.