Plans for pension ‘megafunds’ unveiled to boost growth and reward British savers - In her first Mansion House speech as Chancellor, Rachel Reeves announced plans for megafunds which she said could unlock £80 billion for investment.

Rachel Reeves is set to unveil plans to merge local government pension scheme assets and consolidate defined contribution schemes into ‘megafunds’.

Chancellor Rachel Reeves wants to copy the way Canada and Australia group their pension funds together in a bid to increase investment. The government believes this could bring in an extra £80bn of funding.

Chancellor of the Exchequer Rachel Reeves said the UK will introduce legislation next year to pool £1.3 trillion ($1.7 trillion) of pension savings into a series of “megafunds,” as the new Labour government tries to deliver on its pledge to boost private investment and economic growth.

The government says its changes could "unlock" £80bn worth of investment into the UK in things like energy infrastructure, tech start-ups, and public services. "Our pension funds in Britain are too small to be making the investments that get a good return for people saving for retirement and to help our economy to grow," Reeves said.

British Treasury chief Rachel Reeves is set to announce plans later Thursday to merge dozens of pension funds with the aim of unlocking tens of billions of pounds for investment and boosting the U.K.’

Chancellor of the Exchequer Rachel Reeves said the UK will introduce legislation next year to pool £1.3 trillion ($1.7 trillion) of pension savings into a series of “megafunds,” as the new Labour government tries to deliver on its pledge to boost private investment and economic growth.

The UK Government plans to create pension megafunds that could unlock billions of pounds for infrastructure investment, Pensions Minister Emma Reynolds has told GB News. The initiative aims to consolidate existing pension schemes into larger funds capable of making substantial investments in major projects across Britain.

A government plan to use people's pension savings to boost economic growth has broad public support, new research reveals. Do YOU think it's a good idea - take our poll.