What will a Labour win mean for your pension?

By Antonia Medlicott

  • Published: June 21, 2024
  • Edited by: Clare West
  • Last Update: 2 days ago
check Fact Checked

An increase in investment in UK markets

As part of their manifesto ahead of the UK elections, Labour have pledged to increase investment from pension funds into UK markets.

The idea is to stimulate growth in the UK economy. But will it still stimulate growth to the same scale in your pension fund?

The present share of the UK stock market owned by pension funds and insurance companies, has dwindled to a disappointing 4% in recent years.

What are the main arguements?

As always there are two sides to this argument. Even a small percentage of the trillions currently invested in UK pension schemes could make a difference to the growth capital of UK markets. However, most pension income currently comes from abroad, and pension savers will be well within their rights to ask whether more pension regulation will ultimately affect their gains.

Which platforms currently have a significant UK weighting?

We took a look at which of the current pension funds have a significant weighting in the UK.

AJ Bell came out on top for UK pensions; however, the platform that stood out here was Vanguard, which still had a significant UK weighting at 16.3%, but had also achieved average returns of 39% on their pension funds in the last 5 years.

Of course, we can’t ignore that the top-performing pension fund, from Moneybox, also had one of the lowest UK weightings at just 3.1%. And even that fund would have failed to outperform the average S&P 500 fund.