Pension transparency urged as UK assets remain a fraction of savings

Calls for greater openness about where pension savings are invested have intensified as the United Kingdom’s pension pots remain overwhelmingly overseas. The chief executive of the London Stock Exchange, Dame Julia Hoggett, argues that savers deserve to know which companies their retirement funds support.

Why transparency matters now

Only about four per cent of pension‑fund capital is currently allocated to UK assets, a figure that places the domestic market far behind most international peers. In listed equities the share is roughly 4.4 per cent, a steep decline from more than half of holdings two decades ago. Critics say the absence of clear data hampers both public understanding and governmental assessment of whether pension savings are bolstering the national economy.

Industry pressure and recent pledges

The savings sector is under mounting pressure to channel more money into home‑grown equities and private‑market projects. In 2025, a coalition of 17 pension providers signed the Mansion House Accord, committing to invest at least five per cent of their assets in UK private assets and infrastructure. At the same time, regulators are urging annuity firms to make costs and performance figures more transparent.

What the market says

Industry bodies caution that any mandate to raise domestic exposure could clash with fiduciary duties to seek the best returns for members. They also point to a limited supply of attractive UK assets and the time required to develop private‑market expertise. Nevertheless, Hoggett contends that offering tax‑advantaged accounts without a corresponding requirement for local investment makes the UK an outlier.

She said, "We need more transparency for pensioners and for those investing in the UK as to where their money is actually invested," emphasizing that clearer reporting could help policymakers gauge the impact of initiatives aimed at reviving the domestic market.

Potential impact of greater visibility

If pension trustees gain a clearer picture of where members’ money is placed, they may face increased pressure from both beneficiaries and policymakers to shift a larger share of capital into British companies and infrastructure projects. Such a move could mitigate the recent exodus of listings from the London market and provide a steadier source of funding for fast‑growing private firms.

The Association of British Insurers has not yet commented, but the debate is expected to shape forthcoming regulatory proposals and the broader discussion about the UK’s capital‑raising ecosystem.