UK Government Plans Major Pension Fund Reforms to Create 'Megafunds'

Chancellor Rachel Reeves outlines plans to merge local pension schemes in an effort to boost investment in UK infrastructure and economic growth.

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New Pension Schemes Bill: What you need to know about the megafunds shake-up

The Independent

Right-wing think tank welcomes Rachel Reeves’ pension ‘megafunds’ overhaul

The Independent

UK set to create new pension megafunds with aim of unlocking $100 billion for investment

Associated Press

Pension ‘megafunds’ to be created to boost investment and economic growth

The Independent

'Too small' UK pension funds hold back growth, says Rachel Reeves

BBC News

Reeves to announce ‘megafunds’ shake-up of local government pension scheme

The Guardian

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Overview

A summary of the key points of this story verified across multiple sources.

The UK government, led by Chancellor Rachel Reeves, is set to consolidate 86 local government pension schemes into 'megafunds' to unlock around £80 billion for investment. This reform, called the largest in decades, aims to enhance returns and economic growth by pooling assets for professional management. While business leaders cautiously welcome the initiative, concerns about potential risks to savers' investments and the feasibility of suitable projects have been raised. The reforms will be introduced via a new Pension Schemes Bill next year, with broad political support expected.

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