Pension cash 'could fund UK infrastructure projects'

Private equity firms 'pose risk to public interest'

Concerns raised over potential impact on pension savers

A top economist has warned that diverting pension money into infrastructure and private equity could undermine the primary role of pension funds.

John Ralfe, director of the New Economics Foundation, said that while it is important to find new ways to boost UK economic growth, it is crucial that the interests of pension savers are protected.

He said: "The primary role of pension funds is to provide retirement income for savers. Any changes to the way that pension money is invested must be made with this in mind."

Concerns have also been raised about the potential impact of private equity firms on the UK economy.

Private equity firms typically buy companies, often with borrowed money, and then sell them on for a profit. This can lead to short-term profit-taking and job losses.

The National Association of Pension Funds (NAPF) has called on the government to ensure that any changes to the way that pension money is invested are made in a way that protects the interests of savers.

A NAPF spokesperson said: "We are concerned that the proposed changes to pension investment rules could lead to a reduction in the amount of money available for retirement income."

The government is expected to announce its plans for pension reform in the autumn.