On 29 April 2026 the Pension Schemes Act received Royal Assent, introducing major reforms to the UK pension system. The legislation is expected to benefit around 22 million workers, with an average person projected to gain up to £29,000 in retirement savings. Key provisions include the automatic consolidation of small pension pots, a Value for Money framework that will require schemes to demonstrate cost‑effectiveness, and the creation of large, multi‑employer defined‑contribution “megafunds” of at least £25 billion. The Act also allows local government pension schemes to be pooled under FCA‑regulated managers and gives defined‑benefit schemes flexibility to release surplus funds, potentially freeing £160 billion for employers and members. The changes aim to lower costs, increase returns, and provide clearer, more secure retirement outcomes.
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