Pension Funds Turn Down UK Plc's Plan to Encourage Savers to Invest in Local Stocks

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 13 2025

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Source: Reuters

Proposal for Increased UK Investment: Over 100 British business executives, including leaders from major companies, have urged the UK government to mandate that pension funds allocate at least 25% of their default assets to UK investments to reverse the decline in domestic stock ownership.
Concerns from the Pensions Industry: The pensions industry has criticized this proposal, arguing that it could introduce significant risks to investment returns and that the interests of savers are being overlooked in the push for increased UK asset ownership.
Current Investment Trends: UK pension funds currently hold only 4.1% of their equity investments in UK-listed companies, a significant drop from 53% in 1997, while the global average for defined contribution funds is over 13%.
Market Performance Comparison: The appeal of overseas markets is highlighted, with the U.S. S&P 500 experiencing a nearly 500% increase since 2010, compared to an 80% rise in Britain's FTSE 100, indicating a shift in investor preference.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.