Recent research has uncovered that many of the UK’s biggest pension funds are not investing in British businesses.
The report found that leading pension funds are often investing as little as 0.3% of the billions at their command into UK listed companies. In stark contrast, pension funds based overseas are now pushing money into British-based businesses to increase the wealth of their pensioners.
UK consumers with concerns about how their wealth is being invested can look to expert financial planning services in Chester, Birmingham and other UK cities for help. Unlike many other financial advisors, wealth managers offer an unbiased opinion of potential assets and can be relied on for a clear view of investment vehicles used to prepare for retirement.
The lack of support for British companies from pension funds has been highlighted by financial experts in the study as unpatriotic. It finds the funds at odds with UK Chancellor of the Exchequer Jeremy Hunt’s calls for more money from UK pensions to be injected into British businesses.
Statistics show that in the last 20 years, pension assets that are invested in companies listed in the UK have experienced a dramatic drop. In 1997, 53% of pension assets were poured into UK firms, but by 2021 this proportion had plummeted to a mere 6%.
According to the Tony Blair Institute think tank, domestic stock exposure has seen it decline even further in the last two years, dropping to a recorded average of 4%.