A host of the biggest names in UK tech have thrown their weight behind plans unveiled by Rachel Reeves to create pensions ‘megafunds’ with the potential to invest in fast-growth businesses.
Top tech organisations including Startup Coalition, Founders Forum and Tech Nation have backed the plans, which will see the creation of eight funds through consolidating defined contribution schemes and pooling assets from the 86 separate Local Government Pension Scheme authorities.
The organisations have penned an open letter to the Chancellor, expressing their hope that the move will “catalyse the growth of emerging industries”.
The letter reads: “Pension reform is one of the biggest levers the government can pull to meet its growth mission.”
“We support your proposed reforms which respond to the changing investment landscape where traditional models, heavily reliant on bonds and low-risk assets, are no longer sufficient to meet the needs of today’s pensioners....