Uk workers could get £6k boost to pension pots under new plans

Uk workers could get £6k boost to pension pots under new plans


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PLANS PUT FORWARD BY THE GOVERNMENT COULD SEE A BOOST TO RETIREMENT POTS 06:42, 29 May 2025 Millions of workers across the country could see a £6,000 boost to their retirement pots as part


of Government proposals to double the number of UK pension megafunds by 2030. Reforms in the Pension Schemes Bill could see 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. This could lead to in an investment of £50 billion in


infrastructure projects, which the Treasury hopes will boost the economy and drive up higher returns for savers. Chancellor Rachel Reeves said: "We’re making pensions work for Britain.


"These reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses – the plan for change in action." READ MORE: NEW £200 COST OF


LIVING PAYMENTS CONFIRMED FOR JUNE Article continues below According to the Treasury, the schemes could save £1 billion a year through economies of scale and improved investment strategies.


The local government pension scheme will be consolidated under the reforms, reducing the current 86 administering authorities into six pools. Deputy Prime Minister Angela Rayner said:


"The untapped potential of the £392 billion local government pension scheme is enormous. "Through these reforms we will make sure it drives growth and opportunities in communities


across the country for years to come – delivering on our plan for change." Sir Steve Webb, a former Liberal Democrat pensions minister who is now a partner at consultants LCP (Lane


Clark & Peacock), described it as a 'truly a red letter day for pension schemes, their members and the companies who stand behind them'. He said: "The Government has


clearly been bold in this area and this opens up the potential for this surplus money to be used more productively to benefit scheme members, firms and the wider economy." Article


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