UK should learn from Australia’s pension funds

Australia’s superannuation pension funds manage trillions in assets and have developed a long-term, globally minded investment approach that many countries, including the UK, admire, writes Lady Mayor Susan Langley

At a moment of global volatility, the smartest economies are not retreating, they are building stronger partnerships. That is the context in which I will visit Australia this week as the UK’s ambassador for financial and professional services: to deepen one of our most important investment relationships and to make the case for Britain as a long-term destination for global capital.

Australia is home to one of the world’s largest and most sophisticated pension systems. Its superannuation funds manage trillions in assets and have developed a long-term, globally minded investment approach that many countries, including the UK, admire. As our two financial centres deepen their ties, there is a powerful opportunity to connect that capital with the UK’s world-leading pipeline of investment opportunities.

And the UK’s fundamentals are strong. New research by the City of London Corporation reveals the UK continues to lead Europe as the top destination for foreign direct investment in financial and professional services, creating more than 12,000 new jobs across the country in 2025. London remains a global hub for capital, innovation and talent, home to one of the world’s deepest financial ecosystems and a thriving tech sector.

That is why I warmly welcome the UK government’s new “Supers Unit”, designed to strengthen engagement with global pension funds, particularly those in Australia, and unlock greater flows of capital into UK growth sectors. This initiative sends a clear signal: we are serious about partnering with long-term investors and making it easier than ever to invest in Britain. It complements the new Office for Investment: Financial Services, which will provide a seamless, investor-focused approach from market entry through to expansion.

The prize is significant. Australian pension funds already hold substantial investments in the UK, and there is strong potential for this to grow further, particularly in infrastructure, real estate and private markets, where the UK offers deep expertise and a globally connected platform.

But this is not a one-way relationship. My visit is also about learning. The UK is on a journey to unlock more long-term capital from our own pension system to support growth, innovation and the transition to net zero. The Mansion House Accord is at the heart of that effort, a landmark commitment by pension providers to invest a greater share of defined contribution funds into private markets.

Today, only around three per cent of UK pension assets are allocated to private markets, compared with significantly higher levels in Australia. Closing that gap matters, not just for returns, but for our economy. It means backing the next generation of British businesses, financing infrastructure and ensuring that savers share in the country’s growth story.

The Accord could unlock tens of billions of pounds into high-growth sectors by the end of the decade. But delivery is key. Building the right investment vehicles, partnerships and market infrastructure takes time, and this is where we can learn from international leaders like Australia, who have successfully scaled these capabilities over many years.

There is a clear alignment here with the new Supers Unit. Both initiatives are about mobilising long-term capital more effectively: connecting global investors to UK opportunities, while strengthening our own domestic investment ecosystem. Together, they form part of a broader strategy to ensure the UK remains one of the most attractive destinations for investment anywhere in the world.

At a time of global uncertainty, that stability and openness matter more than ever. Investors are looking for trusted, rules-based markets with long-term vision. The UK offers exactly that.

As I meet with investors, policymakers and industry leaders across Sydney, Melbourne and Perth, my focus will be on building a modern partnership between our two countries, one that reflects the scale of our ambitions.

Because ultimately, this is what the mayoralty is about: connecting capital with opportunity.

And in both the UK and Australia, there is no shortage of either.

Susan Langley is the Lady Mayor of the City of London