![\"Bar](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/01\/https:\/\/d6c748xw2pzm8.cloudfront.net\/prod\/7da7c400-d82d-11f0-b15e-a38e1715c0d9-standard.png\")
<\/p>\n
The UK has been one of the most active countries in trying to channel its pension savings domestically this year, using a number of reforms to consolidate its pension system. Chancellor Rachel Reeves hopes the moves will push some \u00a380bn into \u201cproductive assets\u201d such as private companies and infrastructure, and she expects half of this to flow to the UK.\u00a0<\/p>\n
Ministers have also co-ordinated a voluntary agreement between 17 of the country\u2019s largest defined contribution pension providers to invest at least 5 per cent of their assets in UK private markets by the end of the decade.\u00a0<\/p>\n
To hold them to this pledge, the government is introducing legislation this year to enable regulators to force a minimum amount of investment into private assets, should pension funds not honour their commitment.<\/p>\n
However, a director at one of the UK\u2019s largest professional trustee firms said he always sought investments on merit rather than the wishes of the government. If pension schemes were forced to invest in certain assets it would \u201cput trustees in a very difficult position\u201d, given their fiduciary duty to act in the best interests of their scheme members, he said. <\/p>\n
The global drive for more domestic investment could \u201ccreate competing pressures\u201d of balancing savers\u2019 best interests with national priorities, said Tim Jenkins, partner at consultancy Mercer. <\/p>\n
Industry figures expect governments to focus more on domestic investment to shore up their energy and defence sectors amid rising uncertainty over US foreign policy following the capture of Venezuelan leader Nicol\u00e1s Maduro.<\/p>\n
Energy independence and security have been \u201cchronically underinvested in the UK and Europe for decades\u201d, said Mike Eakins, chief investment officer of pensions firm Phoenix Group.\u00a0\u201cThere will definitely be a desire of policymakers for private pension capital to invest more domestically.\u201d <\/p>\n
![\"Mark](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/01\/https:\/\/d1e00ek4ebabms.cloudfront.net\/production\/d42204e0-e2fd-4294-8179-52d9e179c3ca.jpg\")
Canadian Prime Minister Mark Carney wants to encourage investors such as pension funds to back national infrastructure projects \u00a9 Dave Chan\/AFP via Getty Images<\/p>\n
In Canada, Prime Minister Mark Carney has launched a \u201cBuy Canada\u201d campaign that prioritises local products for procurement with the aim of making it \u201cthe strongest economy in the G7\u201d. <\/p>\n
In December 2024, Ottawa said it would remove its 30 per cent cap on owning Canadian entities. The country has also set up a so-called Major Projects Office to fast-track national infrastructure projects and reduce the uncertainty around such programmes, as a way of encouraging investors such as pension funds.<\/p>\n