Brits want LGPS funds to prioritise “best” returns over forced UK investment
Author: LAPF Investments | Published: April 21, 2026
Brits believe LGPS funds should prioritise generating “the best” returns for their savers over forced investment in the UK.
Based on new polling from More in Common, almost twice as many Brits favoured maximising the performance of the LGPS over mandated domestic investment.
It comes in the week the Pension Schemes Bill – which contains a “reserve power” that could force some pension schemes to invest a minimum portion of their assets in the UK – returns to the House of Lords.
Commissioned by the UK Sustainable Investment and Finance Association (UKSIF), More in Common asked more than 2,000 British adults which of these statements came closest to their view:
- LGPS funds should prioritise investment in the UK, even if it may not produce the best returns
- LGPS funds should focus primarily on getting the best returns of pension savers, rather than on investing in the UK
- Don’t know
All told, 40% of those surveyed believed returns should be prioritised, followed by 37% who said they didn’t know, while 23% thought funds should prioritise investment in the UK.
Liberal Democrat party voters, meanwhile, were most likely to support the position that funds should focus primarily on getting the best returns, with 54% supporting this view, followed by 51% of Reform UK voters. This was followed by 49% of Conservative voters, 45% of Labour voters, and 35% of Green voters.
UKSIF chief executive James Alexander said: “This survey shows that British savers want decisions about their pensions to focus on secure, long-term growth, not political priorities.
“Forcing pension schemes to invest in the UK risks pushing capital into overvalued assets and distorting markets. This could harm pension performance at a time when retirees are already seeing their living standards fall due to inadequate savings.
“Finance experts, who manage capital over decades, need to be trusted to invest savings responsibly, balancing strong returns with emerging risks and opportunities.
“Policymakers should be focusing their efforts on building a strong pipeline of UK investment opportunities in fast-scaling sectors, such as clean energy, so that pension capital can be deployed where it drives the most growth across the wider economy.”
