Chancellor Rachel Reeves has set out government plans to double the number of so-called pension ‘megafunds’ by 2030.

A megafund is a multi-employer Defined Contribution pension scheme or a local government pension scheme which manages at least £25 billion in assets.

The government has outlined its plans to help reform the pensions industry in the UK. £25 billion megafunds will be created and will have to make a portion of their investments locally in order to help boost economic growth.

Megafunds will also see millions of UK workers retire with bigger pension pots, the government added. 17 of the largest pension firms in the UK have already approved the terms of the reforms, according to the government.

Commenting on the matter, the Chancellor said: ‘We’re making pensions work for Britain.

‘These reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses — the Plan for Change in action.’