Chancellor in favour of “Canadian pension model” ahead of planned review of UK pensions

The Chancellor of the Exchequer, Rachel Reeves MP, has called on UK pension funds to learn from the Canadian pension system to "deliver better returns for savers and unlock billions of pounds of investment".

In a press release issued on August 7, 2024, Ms Reeves commented that Canadian pension schemes can "invest far more in productive assets like vital infrastructure than ours do" due to their size.

The statement was made ahead of a roundtable meeting with a group of Canadian funds in Toronto. The meeting is part of the government's engagement with industry as part of the widescale review of the UK pensions industry announced following the General Election.

The Chancellor confirmed that her first Mansion House address will focus on the role of the financial services sector in delivering investment and financing growth.

On the same theme, a report from the Pensions and Lifetime Savings Association (PLSA), "Creating a pipeline of investable UK opportunities", published on August 12, 2024, identifies six areas where either existing barriers could be removed or where pension funds might be incentivised or encouraged to allocate more to the domestic economy.