{"id":518966,"date":"2025-10-22T06:39:17","date_gmt":"2025-10-22T06:39:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/518966\/"},"modified":"2025-10-22T06:39:17","modified_gmt":"2025-10-22T06:39:17","slug":"reeves-to-overhaul-workplace-pensions-in-bid-to-boost-economy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/518966\/","title":{"rendered":"Reeves to overhaul workplace pensions in bid to boost economy"},"content":{"rendered":"

\n\t\t\t\t\tPooling the pension funds will also allow for bigger investments in assets such as UK businesses and infrastructure projects\t\t\t\t\t <\/p>\n


\n \"author
\n <\/a><\/p>\n

Senior Political Correspondent<\/p>\n

A pensions overhaul, which will see companies able to pool larger savings schemes into one for better investment, will be unveiled by ministers today.<\/p>\n

The move to introduce larger, collective pots would increase pensions by as much as 60 per cent, the Government said, as well as providing better income security.<\/p>\n

Unlike defined contribution (DC) schemes<\/a>, pensions known as collective defined contribution (CDC) allow employers to pool multiple schemes into one.<\/p>\n

New FeatureIn ShortQuick Stories. Same trusted journalism.<\/p>\n

This means there is more security<\/a> and higher average incomes throughout retirement when compared to individual pension pots, the Government said.<\/p>\n

Pooling the pension funds will also allow for bigger investments in assets such as UK businesses and infrastructure projects.<\/p>\n

But CDC schemes also do not guarantee a specific income. As a result, the pensions paid to members can fluctuate.<\/p>\n

Pensions UK said the schemes \u201chave the potential to boost retirement savings by sharing risks between savers\u201d.<\/p>\n

Zoe Alexander, head of policy, said: \u201cSuccess depends on striking the right balance between strong protections for members, simplicity and fairness of scheme design.<\/p>\n

\u201cWe agree with the Government that innovation in CDC<\/a> carries huge promise for savers and are pleased that this Government is supporting the development of both multi-employer and at-retirement CDCs.\u201d<\/p>\n

Minister for Pensions Torsten Bell said collective pensions would \u201coffer a better deal\u201d to savers \u201cwhere risks are shared, returns are smoothed and retirement incomes are stronger and paid for life\u201d.<\/p>\n

\u201cBy expanding CDC to more employers and consulting on retirement CDC, we are helping build a fairer pensions system that gives people confidence their hard-earned savings will last and they can enjoy their retirement,\u201d he said. <\/p>\n

In a so-called CDC scheme, both the employer and employee contribute to a larger collective fund, which is then paid to members in retirement. <\/p>\n

The main advantages of this type of pension scheme are the potential for a longer-term investment strategy than defined contribution schemes. <\/p>\n

But pensions in CDC schemes are not guaranteed, which means that the pensions paid to members can fall.<\/p>\n

The Government is also consulting on a scheme that would allow savers to transfer their money from a traditional scheme into a CDC investment scheme when they retire.<\/p>\n

Nausicaa Delfas, head of the Pensions Regulator, said \u201cinnovative solutions\u201d such as the retirement-only CDC schemes could play a part in providing a \u201csustainable income\u201d for retirees<\/a>.<\/p>\n

She said: \u201cI\u2019d encourage people to get involved with the upcoming consultation to ensure their ideas are heard.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Pooling the pension funds will also allow for bigger investments in assets such as UK businesses and infrastructure…\n","protected":false},"author":2,"featured_media":518967,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,617,2499,16,15],"class_list":{"0":"post-518966","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-pensions","11":"tag-personal-finance","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115416451153718997","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/518966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=518966"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/518966\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/518967"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=518966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=518966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=518966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}