Pensions - Articles - The three mega gaps facing the economy

 After highlighting the positive state of the bulk annuity market, with the sector enjoying its busiest ever six-month period in H2 2022, worth around £21bn, Andrew said LGRI is determined to build on its successes to tackle the challenges facing the UK at a societal level.
 
 He said there are three “mega gaps” that need to be addressed to connect the potential of Defined Benefit (DB) pensions to the wider economy: age, infrastructure and carbon. He said:

  

 1. We must see the ageing society as an opportunity to rewire the economy that will soon have more people over 65 than under 18. This will create a virtuous circle whereby the savings of older generations fund assets that provide societal benefits for the next generations.

  

 2. Old infrastructure, and old-fashioned thinking, is holding back productivity and the creation of new real assets.

  

 3. The economy needs to undergo a huge programme of decarbonisation in every home, every business – in every part of society – and a continual move towards clean and green energy.
 
 Speaking after the event held in central London, Andrew said: “There is a phenomenal opportunity open to insurers, with a vibrant market driving innovation and collaboration, but we must make sure we gear all that we do to tackling the great challenges facing us as a nation: age, infrastructure and carbon.
 
 “There is a massive pool of assets in DB pensions; we predict up to £190bn could be made available for reinvestment in the UK economy’s infrastructure. By harnessing the country’s pensions wealth to deliver regeneration, transport, housing and clean energy, we can usher in an age of inclusive capitalism that delivers real-world impact and a genuine difference for generations to come.”