Experts propose "Great British Bond" for UK savers

At a recent pensions conference in the UK, industry leaders discussed the government's plans to use pension funds to boost the economy. The UK pension wealth is around £3 trillion, and many funds invest in UK companies. However, not all do, as they often prefer safer investments like bonds. While many attendees thought the government's idea could work well, they agreed there is no clear plan for pension funds to invest in emerging UK companies. This lack of a 'framework' makes it difficult for funds to act confidently. Former Chancellor Jeremy Hunt introduced proposals for using pension cash for economic growth, but it ultimately depends on the pension industry to create a viable investment strategy. Fund managers often express concerns about losing money for savers. They believe that large 'products' are necessary for investing in riskier assets, like new companies. These larger investments can help spread the risk while still aiming for high returns, similar to the success of major brands like Marks and Spencer or Tesla. Experts suggest a straightforward solution: creating a Great British Bond. This bond would allow investments in UK growth companies, attracting both pension funds and individual savers. Recent studies show that the interest in UK government bonds, or gilts, has risen significantly. Many believe the government should act quickly to involve savers in the nation's economic growth plans.