The Pensions Regulator (TPR) has launched a new initiative to explore the barriers that could be stopping defined contribution (DC) and defined benefit (DB) pension schemes from investing in growth assets that could boost returns for savers over the long term.

As part of the current phase of work, TPR will use its sector insights to help understand the range of market opportunities and investment vehicles available to pension schemes, their limitations, barriers, and enablers, with an emphasis on UK investment opportunities.

This work, which is expected to be completed by the end of 2025, will focus on DB and DC schemes with material scale that are considering or have the potential to make investments in this area.

TPR will share findings with the government and will publish a market oversight report next year, so that trustees and expert advisers can also benefit from the insights that TPR has gained.

Indeed, the regulator said that, by providing insights from across the market, it wants to help create the conditions for schemes to consider investing in a pipeline of assets with long-term benefits for pension savers.

This also builds on TPR's ongoing engagement with master trusts and other DC schemes, which has already found evidence that the market is responding to the Mansion House commitments, with trustees considering more diversified investment strategies.

TPR chief executive, Nausicaa Delfas, said: “TPR is uniquely placed to engage directly with DC and DB schemes to better understand their approach to investing in private markets and infrastructure, as well as the current challenges and barriers they face.

"We hope our research will provide insight to help trustees consider investment in diverse assets to achieve better returns for savers."

TPR executive director of market oversight, Julian Lyne, revealed that the regulator is also planning to ramp up its work to encourage high standards of trusteeship and scheme governance "in the coming months".

"We expect trustees to acquire the skills, capabilities and access to professional advice to consider investing in diversified portfolios," he stated.

“Where schemes fall short, we will be asking trustees to consider whether it would be in savers’ interests to consolidate into larger vehicles with greater investment capabilities.”

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