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.

IN FULL

Workers could see £6,000 boost to pension pots under Government plans