Wed, 28 May 2025

Wed, 28 May 2025 Reeves outlines plan for £25bn pension 'megafunds'

The government says its overhaul of retirement savings will boost growth and pension pots.

* The UK government plans to create "megafunds" worth £25 billion, which will be instructed to invest locally and boost economic growth.
* The pension industry overhaul aims to follow the examples of Australia and Canada's huge pension investment funds.
* 17 of the UK's largest pension firms have already agreed to implement the reforms in a voluntary agreement.
* The government has also included a legislative backstop, which will allow it to enforce the new rules if insufficient progress is made by the end of the decade.
* The reforms are expected to boost people's pension pots and drive higher returns for pension savers through improved investment strategies.
* Over £50 billion in additional investment is expected to flow into UK infrastructure, new homes, and businesses.
* Workers on average earnings could see a £6,000 boost to their defined contribution pension pot as a result of the reforms.
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