A new paper is urging decision-makers to take bold action, in a bid to unlock an eye-watering £100 billion a year from pensions in the UK under the Labour Party government.A new paper is urging decision-makers to take bold action, in a bid to unlock an eye-watering £100 billion a year from pensions in the UK under the Labour Party government.A new paper is urging decision-makers to take bold action, in a bid to unlock an eye-watering £100 billion a year from pensions in the UK under the Labour Party government.

Financial experts are calling for a pensions revolution to release billions into the UK economy. A new paper is urging decision-makers to take bold action, in a bid to unlock an eye-watering £100 billion a year from pensions in the UK under the Labour Party government.

The paper, from Hymans Robertson and titled The Untapped Potential of Pensions, urges the Labour Party to act. The paper suggests a reworking of pension taxation, using surplus funds from defined benefit (DB) pensions.

It also urges Labour to adopt new savings models like Collective Defined Contribution (CDC) schemes, which could offer 20-50% higher retirement incomes than current pension plans. It also moots axing the traditional pension tax relief system and replacing it with a simpler, flat-rate “top-up bonus” paid directly into pension pots.

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Calum Cooper, head of pension policy innovation at Hymans Robertson, said: “This is a once-in-a-generation opportunity to align pensions policy with national prosperity. By unlocking the untapped potential in pensions, we can not only enhance financial security for workers, but also make a substantial contribution to economic growth.”

Speaking previously, Labour Party Chancellor of the Exchequer Rachel Reeves said: “Despite a very challenging inheritance, this new Government is getting on with the job of delivering our mandate to get the economy growing so we can make every part of our country better off.

“The review we are announcing is the latest in a big bang of reforms to unlock growth, boost investment and deliver savings for pensioners. There is no time to waste. That is why I am determined to fix the foundations of our economy so we can rebuild Britain and improve people’s lives.”

Deputy Prime Minister Angela Rayner said: “After putting in years of hard graft serving their communities, the very least our frontline workers deserve – millions of whom are low paid, millions of whom are women – is dignity and security in retirement.

“That’s why we want to make sure their hard-earned money works harder for them so we ensure they receive the pensions they have earned, whilst unlocking growth across our economy.”