Chancellor to create DC 'megafunds' in Mansion House growth bid

Chancellor to unveil ‘biggest pension reforms in decades’

Martin Richmond
clock • 3 min read

Chancellor Rachel Reeves will announce plans to create pension “megafunds” through a series of reforms to defined contribution (DC) schemes and the Local Government Pension Scheme (LGPS) as part of the government’s bid to generate economic growth and boost retirement outcomes.

In her maiden Mansion House speech, to be delivered later today (14 November), Reeves will announce the measures as part of the "biggest pension reforms in decades". The government said while the LGPS and DC markets hold a combined £1.3trn in assets under management (AUM), the current pensions landscape is "fragmented" and lacks the size required to invest in new businesses or infrastructure projects. The government's analysis, republished in the interim report of the pensions investment review, found pension funds begin to return "greater productive investment levels" once they reac...

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