A 1 percent shift of assets into productive investments could mean £8 billion to boost the economy, the government claimed in its statement.

It added that pension pots for savers could be boosted by more than £ 11,000, as productive assets would yield higher returns.

The government also plans to review the investment potential of a pension scheme of local governments worth £360 billion while also scrutinizing £2 billion in fees.

As a first step, Chancellor Rachel Reeves and Pensions Minister Emma Reynolds will meet with representatives from the pensions industry on Monday.

The next phase of the review will follow later this year.

Reeves described the review as “the latest in a big bang of reforms to unlock growth, boost investment and deliver savings for pensioners.”

“There is so much untapped potential in our pensions markets, with an industry worth around £2 trillion,” Reynolds added.