UK pension funds should not be forced to consolidate or invest in high-growth companies, Chancellor of the Exchequer Jeremy Hunt said, but he said "fewer, larger funds" were needed.
He confirmed that 10 major investment groups have now committed to invest £50 billion in unlisted companies by the end of the decade, up from the nine when the so-called Mansion House agreement was launched in July.
Changes are needed in the sector to give pension holders better long-term returns, he said at an event, Reuters reported.
The Chancellor expressed his wish to see larger funds with the confidence to invest in growth companies.
In July, Hunt said: "I think we have got too many pension funds in this country, and I do want to see an industry where we end up with fewer, larger funds."
"I'm not thinking we should mandate how people do that. I want to give people options ... but to make it clear that no change is not an option."