Investment by Australian pension funds in the UK and Europe is projected to more than double over the next decade to over A$660 billion (€370 billion), according to a report by Mandala Partners, commissioned by IFM Investors and the Super Members Council.
The study showed growing cross-border allocations as Australia’s superannuation system expanding from the current A$4.3 trillion (€2.4 trillion) to an estimated A$8.3 trillion (€4.6 trillion) by 2035. Overseas allocations have risen from 41% to 47% over the past decade, with nearly 60 cents in every new dollar now invested internationally. The UK, EU and US remain key destinations, according to the findings.
As of mid-2025, Australian pension funds had invested A$83 billion (€46.5 billion) in the UK and A$181 billion (€101.4 billion) in the EU, accounting for almost one in five dollars of their offshore holdings. By 2035, the figures are expected to reach A$203 billion (€113.7 billion) and A$460 billion (€257.7 billion) respectively, with average annual growth of around 10–11%.
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“Australian capital is supporting Europe’s energy transition, digital infrastructure and transport renewal, including through significant allocations into renewable energy and storage projects and industrial decarbonisation across the EU, fibre-to-the-home broadband in Germany and airports, transport and energy projects in the UK,” stated the report.
The UK and EU could draw more Australian capital by cutting red tape, the report recommended, speeding up approvals, expanding public-private partnerships and ensuring stable returns in sectors like energy, water and transport.
“Australia’s pool of retirement savings is growing at such speed and scale that the world’s biggest economies are competing for our pension capital, which means more money in retirement for Australians and finance that supports critical infrastructure projects and jobs in the UK and Europe,” said Super Members Council’s CEO Misha Schubert.
“Our research shows Australian pension investment in the UK and Europe is set to more than double to over A$660 billion (£323B; €370B) by 2035, but unlocking the full potential of this capital will require policy settings that streamline regulation, accelerate planning and ensure predictable revenue frameworks in key sectors,” said Mandala’s senior adviser, Nick Williams.
“Australian pension investors have deep expertise in infrastructure investment, which makes them a sound and reliable solution when it comes to helping meet the infrastructure needs of UK and European societies,” said IFM Investors’ head of global external relations, David Whiteley.
