If we want to encourage pension savers to back Britain, we should reward them for doing so, says Michael Healy

In two weeks, the Chancellor will finally put pension savers out of their misery and reveal just what kind of raid she’s planning. Much of the backlash has focused on reports of cuts to the tax-free lump sum or higher National Insurance on salary sacrifice. Both would penalise responsible investors at a time when the UK desperately needs more, not less, investment for the future.

Another, less-discussed policy gaining traction is a potential mandate forcing pension schemes to hold a set proportion of their assets in UK equities. Such a move would gain some support – LSEG boss David Schwimmer recently noted that a 25 per cent UK allocation in defined contribution schemes could inject up to £100bn into the domestic market. It’s a tempting headline, but it carries real risks for savers.

On the face of it, the idea seems patriotic – directing more pension money into UK companies. In reality, it would be a........

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