Pension Scheme Illiquid Assets Investment

The Department for Work and Pensions is reviewing rules governing pension scheme investments in illiquid assets, including amendments to clearing obligation exemptions for pension funds. The policy addresses concerns that some retirement savings vehicles (particularly cash Lifetime ISAs) may underperform compared to diversified portfolios including bonds and equities, and seeks to improve long-term retirement outcomes through better asset allocation frameworks. Recent regulatory amendments in 2025 modify how pension funds can manage and value illiquid holdings.