City AM: Pension reforms show the private sector is backing Britain

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In a landmark show of leadership, 17 of the country’s largest defined contribution (DC) pension schemes have come together under the Mansion House Accord, committing to invest 10 per cent of their default funds into private markets, half of which will be earmarked for the UK. This bold, industry-led move could unlock over £25bn for the UK economy by 2030, capital that will be deployed into major infrastructure projects, clean energy, high-growth businesses and the innovation powering our future.

This is the private sector backing Britain, and backing long-term value creation for millions of savers. The Accord builds on the momentum of 2023’s Mansion House Compact, which first saw DC pension providers agree to invest in the real economy and the UK’s scale-up ecosystem. Together, these initiatives mark a turning point in how we think about retirement savings: from passive pots chasing liquidity, to active capital fuelling national renewal.

The economic rationale is clear. The government has made growth its central mission and Chancellor Rachel Reeves has rightly called the financial services sector the “jewel in the crown” of the British economy. Delivering growth at scale will require more than rhetoric. It will demand long-term capital, deployed confidently into the UK’s most productive opportunities. That is exactly what the Mansion House Accord is designed to deliver.

This is not a trade-off between growth and savers. The same investments that build national resilience also deliver long-term, value-driven returns. What is good for pension outcomes is good for Britain.

The Mansion House Accord is an important step forward, but it is only the beginning. Government has played its role. The next phase of reform must be driven by the industry, with renewed ambition and clarity of purpose. Let this be the moment we stop looking outward for answers and start investing inward with confidence.

We have the capital. We have the institutions. And now, we have the will. It is time to back ourselves.