CNN. The UK economy badly needs a boost — and the government hopes the nation’s vast pension savings might deliver one. UK finance minister Jeremy Hunt announced Monday that nine of Britain’s biggest pension providers had agreed to increase their investments in high-growth UK companies, a move that he said could unleash up to £50 billion ($64.5 billion) of funding if other pension funds followed suit.
As part of the compact, firms including Aviva (AIVAF), Legal & General (LGGNY) and Mercer have committed to allocate at least 5% of assets in their default funds to unlisted companies by 2030. All UK workplace pension plans offer default funds, which savers who don’t choose their own investment strategy are automatically enrolled into.