Martin Lewis issues update over Rachel Reeves pension fund announcement

Martin Lewis has issued an update over the incoming pension fund announcement from the Chancellor Rachel Reeves. Chancellor Reeves will announce plans to merge local government retirement schemes into “megafunds” as she tries to revive long-running efforts to overhaul the UK’s public pension system.

The Labour Party chancellor will tell an audience of City leaders and chief executives on Thursday that she will introduce a new pensions bill next year that will aim to pool assets from the 86 separate local government pension schemes (LGPS) into eight funds worth about £50bn by 2030.

Taking to Twitter today, BBC and ITV star Mr Lewis said: "I've had quite a few questions about my view the Chancellor's pension fund announcement. Just to say investment strategy is outside my expertise area so I shall leave it to the many others who work in that area."

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In reply, a Twitter/X user said: "Martin Lewis steps back from pension fund talk, leaving the investment gurus to sort out the future of our retirement pots." A second said: "This is probably a wise decision. However many are worried about it. Your view would be interesting."

"I am concerned what effect it will have on my frozen superannuation scheme pension, and if it puts it at risk!" another said. "Perhaps your greatest strength is to stick to what you know So many stray beyond Way beyond," another typed.

Ms Reeves’s inaugural Mansion House speech will also confirm plans to combine smaller defined contribution schemes across the country into pools of £25bn to £50bn. If successful, the government claims the programme will be part of the “biggest pension reforms in decades” while saving money on fees for councils and boosting investment for local areas and national infrastructure.

“Last month’s budget fixed the foundations to restore economic stability and put our public services on a firmer footing. Now we’re going for growth,” Reeves said in a statement. “That starts with the biggest set of reforms to the pensions market in decades to unlock tens of billions of pounds of investment in business and infrastructure, boost people’s savings in retirement and drive economic growth so we can make every part of Britain better off.”