
Pension Reform and Private Markets: What it Means for Talent in Financial Services
Posted August 12, 2025If you’re working in the Financial Services industry, then it will have been hard to ignore the latest changes set to take shape across the UK pensions market.
And the changes are big. The entire UK pension landscape is now on the cusp of a transformation that will have far-reaching implications, not just for savers, but for the entire financial services sector.
In this blog we’ll lay out exactly what the proposed changes are and what they might mean for talent and hiring across the financial services sector.
Let’s go.
What is the UK Pension Reform?
Well, the 2025 Pension Investment Review and the Mansion House Accord have recently set ambitious targets designed to turbocharge investment in the UK economy and reshape how retirement savings are managed. This is set to have implications across many businesses and how they run and manage their employee pension pots.
What impact will the Pension Reform have?
Under the current system, by 2030 all multi-employer defined contribution schemes and Local Government Pension Scheme pools are expected to hit £25 billion in assets under management, which will create what’s known in the industry as “megafunds.”
However, the new Mansion House Accord (which has been signed by 17 of the UK’s largest pension providers), will commit these providers to invest 10% of default fund assets into private markets, with 5% earmarked for UK-based opportunities.
Collectively, this could unlock up to £50 billion for infrastructure, private equity, venture capital, and other “productive finance” in the UK by the end of the decade.
This change represents a fundamental shift in how UK pensions are managed, how capital flows through the UK economy and what skills the sector will need.
What changes might the UK see after the Pension Reform comes into effect?
Today, only a handful of UK pension providers manage default funds above the £25bn threshold. But by 2030, that number is set to double. We’ll see smaller schemes merge or wind down, and the defined contribution market will consolidate into a small number of heavyweight “megafunds” instead.
At the same time, pension portfolios are set to pivot.
Currently, only about 2% of defined contribution pension assets are invested in private markets and that figure is expected to quintuple to 10% by 2030 which is a dramatic shift into asset classes such as unlisted companies, infrastructure projects, and renewable energy.
Will the Reform cause demand for specific job roles and skills?
So, what exactly does this Pension Reform mean for talent and hiring?
Well, according to our data we’re predicting an increased demand for the following skills:
Change and Transformation
The drive to merge dozens of smaller schemes into megafunds will create a demand for specialist skills to manage this transformation. Providers will need Project Managers, Business Analysts, Actuaries, and Integration specialists who can navigate bulk transfers, align systems, and manage cultural integration across merged schemes.
Investments
Megafunds will need to manage increasingly complex portfolios. This will drive a surge in demand for Investment Managers to source, evaluate, and structure deals in private equity, venture capital, infrastructure, and private debt and Project Finance Specialists to analyse and fund major UK projects in transport, energy, and housing.
Governance, Risk & Compliance
Higher allocations to different asset classes will bring increased scrutiny. Pension funds will bolster their risk management and compliance functions, seeking professionals who can manage stress testing, oversee charge-cap compliance, and ensure investments stay aligned with fiduciary duties.
What challenges might there be for hiring?
While an increasing demand for certain skill sets might be a good thing for the market, these changes and surges do present additional challenges.
Mainly that these skills are already in high demand. Private markets analysts, actuaries, infrastructure finance specialists, and risk experts are among the most sought-after profiles in the financial services workforce today.
For HR and Talent teams, this comes at a time when they are already juggling business-as-usual hiring, driving internal mobility programmes, and spearheading reskilling initiatives to futureproof their organisations. Layer on top the ongoing need to assess how AI will reshape roles and processes, and it’s clear that talent strategies will need to be sharper, more creative, and more competitive than ever to secure the expertise required for this pensions-driven shift.
How we can help
At Sanderson, our team are well versed in navigating the often-murky waters of the UK financial services hiring market. Not only do we have access to some of the best talent pools in the UK to get you the skills you need and fast, but we understand the complexities of future-proofing your hiring strategies while trying to manage day-to-day talent management tasks.
If you’re looking for support, or would just like to chat to us about what the Pension Reform might mean for you and your business, then reach out to us today and let’s chat about how we can help.