Mr Griffith added the Government wanted to make it easier for pension funds to invest in illiquid assets such as infrastructure. While these investments can produce strong returns, they often come at higher costs.
When asked if the Government would change pension funds’ fiduciary management responsibilities, Mr Griffith said he could not provide a definitive answer.
“The direction of travel is to look and see if we can make sure British pensioners, British long-term savers, in the round have the best possible opportunity for good performance.”
The push to get pensions to invest more in British projects comes as foreign direct investment hit a record low of net negative £233bn in 2021, according to official figures. It means that Britain invested billions more overseas than it attracted to its own economy.
A spokesman for the Government said: “We’re determined to increase investment into the UK’s high growth sectors, ensuring our most cutting-edge businesses can access the finance they need to scale up and list in the UK.
“Unlocking the billions of pounds held in pension schemes across the country is key to channelling capital into productive assets in a way that benefits both businesses and pension holders – powering economic growth and increasing the retirement income of millions of savers”.