Pension providers have agreed to boost investment in UK companies as part of a voluntary initiative aimed at increasing economic growth. Seventeen workplace pension providers have signed up to the Mansion House Accord, which could lead to £25 billion being injected directly into the economy by 2030.
Key Objectives of the Accord
- The accord aims for at least 5% of total investments to be allocated to the UK within five years, contingent on the availability of suitable assets.
- Most individuals with pensions from private companies have defined contribution (DC) plans, which pay out based on contributions made during their working years.
Participating Providers
The participating providers include:
- Aegon UK
- Aon
- Aviva
- Legal & General
- LifeSight
- NatWest Cushon (to join once it starts offering DC pensions)
- Nest (offers both DC and defined benefit schemes)
- Now:Pensions (will allocate funds under this accord only from its DC business)
- Phoenix Group (manages various types of schemes)
- Royal London (provides advice-based services through financial advisers)
- Smart Pension (operates two main contract types)
- TPT Retirement Solutions (runs three separate pools with different asset allocation strategies)
Investment Strategy
The agreement follows a meeting between ministers and industry leaders last year, discussing ways pension funds could invest more directly in UK businesses rather than relying on listed shares or bonds issued abroad.
Investment Goals
- Participating firms will aim for at least 5% of total investments, including those made via external fund managers, to be allocated directly into unlisted equities such as start-ups or small businesses within five years, provided there is sufficient supply.
- If all participants meet this target, around £25 billion could be invested directly into the economy by 2030.
Impact on Workers
Ministers expect that most individuals with pensions from private companies will see little change, as most are held in DC plans. However, some workers may experience changes due to "collective" pension arrangements that pool contributions before investing.
Changes in Collective Schemes
- Workers in collective schemes may see changes depending on the assets chosen for investment under new rules introduced last year.
- Collective scheme managers who do not use default options set by each employer’s HR system must follow a nationally set default.
- Any collective scheme manager not using a national default must hold direct equity stakes worth at least 50% of its overall portfolio value across all clients’ schemes combined.
Example
For instance, if a manager has £100 million invested across multiple clients, at least £50 million must be held directly as equity stakes.
Conclusion
Many collective scheme managers already hold significant amounts of direct equity stakes, so this rule change may result in little difference for many workers.
A spokesman stated: "We welcome today’s announcement and look forward to continuing our work with government colleagues." He added, "Our goal remains supporting our customers in achieving long-term financial security through sustainable returns." Additionally, he confirmed that Phoenix Group had no immediate plans to increase allocations beyond current levels, although the firm is committed to following Mansion House Accord principles.
I’m Mark W. Lamplugh Jr., a visionary Chief Executive Officer, Board Member, and best-selling Author with over 25 years of experience driving significant revenue growth and optimizing ROI across the healthcare, wellness, and media industries. Throughout my career, I’ve consistently transformed underperforming operations into thriving ventures by building top-tier marketing organizations, implementing data-driven strategies, and leading transformational change. My empathetic, collaborative, and adaptable leadership style has allowed me to cultivate inclusive cultures of innovation, develop and retain top talent, and forge strong partnerships that fuel organizational success.
Adept in executive leadership, strategic business planning, and brand and marketing strategy, I have a proven track record of boosting annual revenues—achieving up to $1.3B in oncology over three years and generating $360M in mental health initiatives. My approach combines strategic vision with hands-on execution, as evidenced by my success in launching innovative facilities, expanding services for addiction and mental health care, and enhancing organizational brand visibility. As author of “The AI Marketing Playbook,” I contribute thought leadership on the integration of artificial intelligence in marketing, a role that showcases my commitment to staying at the forefront of industry innovation.
I also bring my insights and expertise to a broad audience as the host of cable tv & global streaming of “Street Level Marketing Show,” while my writing has been featured in major publications such as Entrepreneur, Business.com, The Startup, and Kivo Daily. Whether I’m implementing targeted digital marketing campaigns that engage over a million individuals monthly or overseeing multi-million dollar budgets to maximize return on investment, I approach every challenge with a combination of strategic planning, creative problem-solving, and unwavering dedication. Above all, I am passionate about expanding access to high-quality addiction and mental health care through innovative solutions that drive both patient outcomes and organizational growth.
Mark serves on the board of One World for Life, National Fire Heritage Center, and the Institute for Responder Wellness.
Mark (https://marklamplugh.com) is one of the top marketing executives in the United States and has revolutionized how companies reach potential clients thru influence, SEO, social, PR, and traditional marketing. His expertise in Marketing, Social Media, Digital Marketing, and Public Relations has generated millions of dollars in revenue for several national companies. Mark documents many of his techniques in his book “Beginners Guide to Social & Digital Media.” and “Marketing Playbook for Social Media,” which was named the top 100 social media marketing books of all time by Book Authority. He’s also a professional advocate for the behavioral and mental health of firefighters and other first responders. Marks articles have been published in Better Marketing, Startup Magazine, Social Media Today, Kivo Daily, Biz Catalyst 360, Fire Engineering, Firehouse Magazine, and several others.
One of his companies, niches, are marketing products and services to the public safety industry and their employees, specifically mental & behavioral health services. He can be reached for comment at ceo@influencemediasolutions.com
23,000 #1 Connections, 40,000,000 US B2B Contacts and 300,000,000 B2b/B2C email contacts as well as 1,000,000+ monthly social media reach. https://marklamplugh.com
