Introduction of social pension funds could boost social investment, says report
he introduction of social pension funds could help finance projects such as social housing, rehabilitation initiatives and environmental schemes, according to a report released today.
The Social Market Foundation and Big Society Capital have jointly published a new report, Good Pensions: Introducing social pension funds to the UK, which argues that the scale of potential social investment from pension funds is huge, with an estimated 16 million savers and some £600bn in defined contribution pension by 2030.
Evidence was also drawn from a survey by the Defined Contribution Investment Forum which showed that 44 per cent of UK employees would prefer their employer to choose a pension provider that invests in “social” funds, even if this was likely to achieve a lower return on their investments.
However, the report concludes that there are several barriers to introducing current social pension funds in the UK that must first be overcome. These include “inertia on the part of savers and concerns about liquidity and scale on the part of fund managers”.