What is Rachel Reeves' plan for pension funds?

Published On Aug 7, 2024, 5:26 PM

Chancellor Rachel Reeves announced plans to consolidate the UK's 86 local government pension schemes into larger 'megafunds', aiming to improve investment efficiency and reduce costs. Inspired by Canadian and Australian models, the consolidation is believed to have the potential to free up billions for UK infrastructure investments. Although this plan could enhance financial management, experts express concerns that it could prioritize government investment goals over the retirement outcomes for individuals, and some doubt the availability of sufficient investment opportunities in the UK.