Can the UK turn its savings into wealth for the next generation?
the UK already has pension savings, ISAs and a world-class investment industry. This proposal would direct part of that capital into UK bonds and equities, while building dedicated funds for pensions, jobs and health.
Illustrative policy model · market inputs not yet verifiedApply investment allocations to existing pension accounts, ISAs, NS&I and general investment accounts. Savers retain ownership of their assets.
Use UK government bonds and equity capital to support investment. Existing holdings are not new money, and bond issuance remains government debt.
Develop the Future, Employment and Health Funds with clear mandates, independent governance and measurable results.
Day 1: the investment base
The proposed allocations apply to £3,607bn of existing assets. The 20% bond / 10% equity requirement applies to pensions, Stocks & Shares ISAs and general investments; NS&I and Cash ISAs use a 100% government-bond product stream.
All amounts are £bn. Existing pension assets are reclassified into the new superannuation infrastructure only where legally eligible. This table does not include DB assets, annuities or drawdown outside the stated asset pools.
How much is genuinely additional?
Target allocations are not the same as new investment. Change the assumptions to see how much reallocation might be required and how much of bond demand could reach new government issuance.
Existing UK holdings are estimated as a share of each proposed target allocation, not a verified market fact. Bond demand is separated from primary issuance. Existing NS&I financing is excluded from additional funding.
The National Wealth Fund: five distinct mandates
The investment streams channel investors' capital. They do not own the same money again. The three policy funds below have separate legal accounts and financing rules.
Employment and Health Fund expenditure is not assumed to generate a commercial financial return. Equity purchases in secondary markets do not automatically finance new corporate investment.
Over 30 years: pensions and sovereign financing
The Future Fund supports pension promises already earned. New superannuation is owned by workers. Government debt raised to capitalise the Future Fund is shown separately.
How could the savings base evolve?
Existing investment pools grow with illustrative contributions, withdrawals and investment returns. UK allocations remain target holdings; annual changes are not necessarily primary-market funding.
The test: assets, debt and investment outcomes
A stable domestic investor base, professionally managed retirement capital and transparent funding for selected long-term investments.
Remove government debt, turn savings into government-owned assets, guarantee investment returns, or create new financing from existing NS&I liabilities.
When the government borrows £10bn to buy or build an asset, it initially creates a £10bn liability and a £10bn asset. National wealth rises only if the asset's financial and economic benefits justify the financing costs and risks. The model does not claim a positive net wealth outcome without a project-level investment and public-finance model.
Advanced assumptions and pension credits
The simplified 1/35 NI credit is a proposed transition rule, not a full statement of current State Pension law. Protected accrued rights must be valued separately.
Guaranteed annual credit: NI years / 35 × £12,547.60.
In 2026–27 pounds, before protected-rights adjustments
Annual financing ledger and CSV
Sources, exclusions and modelling limitations
Policy inputs: £400bn funded public-sector DC, £650bn corporate DC, £820bn retail DC, £240bn NS&I, £386bn Cash ISAs, £511bn Stocks & Shares ISAs, £600bn general investment accounts. All are provisional user-provided estimates, not independently validated; categories may overlap and must be reconciled before publication.
Liabilities: V76's illustrative State Pension cohort engine is combined with £1,400.9bn of unfunded public-sector occupational pension liabilities as an anchor from HM Treasury, Whole of Government Accounts 2024–25. This model excludes funded DB assets and their matched liabilities, as well as new public-sector DB accrual.
NI rights: DWP new State Pension explanation. The £12,547.60 full pension is based on £241.30/week for 2026–27. Individual entitlement calculations and protected rights need actuarial work.
Cash and NS&I: Treating Cash ISAs as 100% eligible government-bond products requires a new savings product or legal change, liquidity support and clarity on guarantees. NS&I already finances government and is not new Day 1 borrowing capacity. Cash ISA transfers may reduce bank deposit funding. Primary bond issuance, secondary trading and government-owned bond holdings are different transactions.
Forecast limitations: No market price impact, default, inflation shock, term premium, tax receipts, GDP multiplier, NHS recurrent funding or project-level investment return is forecast. The model uses uniform returns and stylised withdrawals. Annual portfolio flows are changes in target holdings, not guaranteed net subscriptions to primary issuance.