A 1 % shift of belongings into productive investments may imply £8 billion to spice up the economic system, the federal government claimed in its assertion.
It added that pension pots for savers may very well be boosted by greater than £ 11,000, as productive belongings would yield greater returns.
The federal government additionally plans to evaluation the funding potential of a pension scheme of native governments value £360 billion whereas additionally scrutinizing £2 billion in charges.
As a primary step, Chancellor Rachel Reeves and Pensions Minister Emma Reynolds will meet with representatives from the pensions business on Monday.
The following part of the evaluation will observe later this 12 months.
Reeves described the evaluation as “the newest in an enormous bang of reforms to unlock progress, enhance funding and ship financial savings for pensioners.”
“There’s a lot untapped potential in our pensions markets, with an business value round £2 trillion,” Reynolds added.