Millions to Get £29,000 Pension Boost After Major Law Change Confirmed
The reforms require better value, automatic consolidation and clearer retirement income options, with the DWP saying average workers could gain up to £29,000.
- On Wednesday, the Pension Schemes Act officially became law, with Minister Torsten Bell calling it a "landmark moment for the 22 million workers" building retirement pots across the UK.
- Fragmented pension systems force workers to juggle multiple small pots as they move between jobs, making retirement savings difficult to track. The Act enables automatic consolidation to provide savers a clearer picture of their assets.
- Creating multi-employer "megafunds" of at least £25 billion is a key measure driving down costs and enabling wider investment. These reforms could benefit the average worker by up to £29,000 by retirement.
- Claire Trott, head of advice at Place, welcomed the bill's constrained mandate power but raised concerns about new default retirement requirements for disengaged savers potentially blurring guidance boundaries.
- Providing Defined Benefit schemes with greater flexibility unlocks around £160 billion for investment in infrastructure and UK businesses. The upcoming Pensions Commission will recommend further strategies ensuring future retirees remain on track.
12 Articles
12 Articles
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The Labour Government's landmark Pension Schemes Bill has passed through Parliament in a major win for their legislative agenda.Under the bill, Chancellor Rachel Reeves and future Government ministers have won the power to force retirement funds to invest a minimum amount in UK firms and private assets.Last night, the House of Lords gave its approval to final amendments that introduce fresh safeguards around the controversial mandation powers.Fo…
Major UK pension reforms passed
The UK has passed legislation requiring pension schemes to prove they're delivering value for money or face consolidation and enables automatic merging of multiple pension pots. The Pension Schemes Bill was passed into law on Wednesday, which will kickstart one of the most major reform packages seen in the UK's pension system. The primary reform is the introduction of a Value for Money framework which will require trustees to offer clear default…
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