Workers could see £6,000 boost to pension pots under Government plans
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Millions could receive £6,000 in pension pots under ‘megafund’ reform plans
- The UK government plans to double the number of UK pension megafunds by 2030, potentially boosting millions of workers' retirement pots by £6,000.
- Reforms in the Pension Schemes Bill propose that multi-employer defined contribution pension schemes and local government pension scheme pools operate at megafund level, managing at least £25 billion in assets within the next five years.
- The Treasury hopes this will result in a £50 billion investment in infrastructure projects, boosting the economy and driving up higher returns for savers.
- Chancellor Rachel Reeves stated the reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses.
- Former pensions minister Sir Steve Webb described it as a “truly a red letter day for pension schemes
- The schemes are expected to save £1 billion a year through economies of scale and improved investment strategies, the Treasury said.