Perspectives

Recent developments in the pension funds sector have showcased a promising trend towards investing in affordable housing. The Pension Insurance Corporation's £50 million investment (with a pledge to raise to £500m over 5 years) to develop affordable and shared ownership homes in Kingston upon Thames is a prime example.

This approach not only offers stable, potentially inflation-linked returns for pension funds but also addresses a critical societal need - alleviating housing shortages. As a pensions investment consultant and a trustee of a social housing charity, I see this as a significant step in harmonizing financial gains with social responsibility.

The historical context of such investments is equally inspiring. The Quakers' creation of Bournville, a suburb of Birmingham, to house Cadbury workers, is a testament to the powerful impact of combining industrial progress with a commitment to worker welfare and community development. Like the Quakers, today's pension funds can play a pivotal role in returning to a more paternalistic, community-focused approach.

As we look forward to more such investments, I am reminded of the dual benefits these initiatives bring - securing the financial futures of pensioners while contributing positively to society. It's a model worth emulating and expanding.

https://www.theguardian.com/business/2023/nov/13/uk-pension-funds-step-in-to-build-affordable-homes