Labour promises bigger pension - but experts find 1 major flaw in plan

Labour promises bigger pension - but experts find 1 major flaw in planExperts have pointed out the problems with Labour's plan for 'megafund' pension reform, saying it does not "automatically" guarantee the returns it wants. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Bookmark Add us as preferred source Comments By Brian Dillon, Audience Writer 12:25, Wed, Jun 3, 2026 Updated: 12:26, Wed, Jun 3, 2026 Labour has brought in a major pension change that could put workers' money at risk (Image: Getty)Labour has promised that a new pension policy will result in higher returns, but finance experts have warned that this is not necessarily the case. The Pension Schemes Act was passed in April and requires all multi-employer Defined Contribution pension schemes and Local Government Pension Scheme pools to operate at "megafund level", managing at least £25 billion in assets by 2030. window.scriptsToLoad.push({url:'https://live.primis.tech/live/liveView.php?s=118222&vp_content=plembed3a6btjknzwqh&cbuster=%%CACHEBUSTER%%&playerApiId=v118222',triggeredBy:'tcfLoaded',delay:1500,containerId:'ovp-primis',title:"Primis player",beforeLoad:()=>{window.top.addEventListener('primisPlayerInit',e=>{try{if(e.detail&&e.detail.playerApiId==="v118222"){if(window.document.getElementsByClassName('jwplayer')[0]){e.detail.float('disable')}}}catch(e){}})},}) The change was inspired by similar policies in Canada and Australia, with the Government saying that the size of these pension funds allows them to invest in big infrastructure projects and private businesses, which will in turn boost the economy while potentially driving higher returns for savers. "These changes will drive more investment directly into the UK economy for new homes and promising scale-up businesses," HM Treasury said in an announcement last year, saying that "millions of workers are set to retire with bigger pension pots". However, a study has found that the Government's desir...