UK Should Learn from Australia s Superannuation Model to Unlock Long-Term Capital

Strengthening ties to attract long-term capital

At a time of global volatility, the smartest economies are not retreating they are forging stronger partnerships. That is the purpose of my visit to Australia this week as the UKs ambassador for financial and professional services: to deepen one of our most important investment relationships and to make the case for Britain as a long-term destination for global capital.

Australias superannuation system is one of the largest and most sophisticated pension ecosystems in the world. Its funds manage trillions of dollars and have developed a long-term, globally minded investment approach that many countries, including the UK, admire. As financial ties between our markets deepen, there is a real opportunity to connect that Australian capital with the UKs world-leading pipeline of investment opportunities.

New research from the City of London Corporation underlines the UKs appeal: the country remains Europes top destination for foreign direct investment in financial and professional services, supporting more than 12,000 new jobs across the UK in 2025. London continues to be a global hub for capital, innovation and talent, with a deep financial ecosystem and a thriving tech sector.

Policy initiatives and the path to more private investment

I welcome the UK governments new Supers Unit, aimed at strengthening engagement with global pension funds particularly those in Australia and unlocking greater flows of capital into UK growth sectors. The Supers Unit sends a clear signal that the UK is serious about partnering with long-term investors and streamlining the process for them to invest here. It complements the newly established Office for Investment: Financial Services, which is intended to provide an investor-focused, end-to-end approach from market entry through to expansion.

Australian pension funds already hold significant investments in the UK, and there is scope for that to grow, especially in infrastructure, real estate and private markets where the UK possesses deep expertise and a globally connected platform. At the same time, the UK can and should learn from Australias experience in scaling pension-led investment capabilities over many years.

Domestically, the Mansion House Accord sits at the centre of the UKs effort to mobilise more long-term capital from pension schemes. It represents a landmark commitment by pension providers to allocate a larger share of defined contribution savings into private markets. Today, only around three per cent of UK pension assets are invested in private markets, a figure well below Australian levels. Closing that gap is important not only for potential returns but for the broader economy: it helps finance infrastructure, backs high-growth businesses and ensures savers participate in the countrys growth story.

If implemented successfully, the Accord could channel tens of billions of pounds into high-growth sectors by the end of the decade. But delivery matters: creating the right investment vehicles, partnerships and market infrastructure takes time, and presents practical challenges where Australian precedents can offer useful lessons.

There is a clear alignment between the Supers Unit and the Mansion House Accord. Both are focused on mobilising long-term capital more effectively connecting global investors to UK opportunities while strengthening the domestic investment ecosystem. Together, they form part of a broader strategy to ensure the UK remains one of the worlds most attractive investment destinations.

In uncertain times, investors prize stability, openness and rules-based markets with long-term vision. The UK offers exactly that. As I meet investors, policymakers and industry leaders in Sydney, Melbourne and Perth, my objective is to build a modern partnership that reflects the scale of our joint ambitions.

Because ultimately, the work of the mayoralty is about connecting capital with opportunity and in both the UK and Australia there is no shortage of either.

Susan Langley is the Lady Mayor of the City of London.