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Government introduces new Pension Schemes Bill but expert says "we risk sleepwalking into another Maxwell-type disaster"

ended 05. June 2025

Millions of people planning their retirement will find it easier to manage and get more from their pension pots thanks to the new Pension Schemes Bill introduced today, the Government claims. The Bill is designed to support working people plan for their retirement by making pensions simpler to understand, easier to manage, and drive better value over the long term – delivering on the Plan for Change to put more money into people’s pockets. Pensions experts were wary of the changes, with one saying: “While the Bill has merits, it is hard to ignore how local government investment options conveniently align with political goals.” Another added: “Most worrying of all are the proposals to make it easier for employers to extract defined benefit surpluses. Many of these schemes were in deficit not long ago. If we’re not careful, we risk sleepwalking into another Maxwell-type disaster — undermining public confidence in pensions for the sake of short-term fiscal gain.” Views will appear below until 09:30.

3 responses from the Newspage community

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Scott Gallacher
Director at Rowley Turton
While the Government is promoting the Pension Schemes Bill as a win for savers, it feels more like an attempt to channel pension money into the UK economy by force rather than attraction. With fintech firms like Wise shifting their listings to New York, the Government might argue this Bill can't come soon enough — but forced investment is not the answer. Instead of using pension pots to prop up a struggling market, we should be making the UK more attractive to global investors, perhaps starting by cutting our high corporation tax. Most worrying of all are the proposals to make it easier for employers to extract defined benefit surpluses. Many of these schemes were in deficit not long ago. If we’re not careful, we risk sleepwalking into another Maxwell-type disaster — undermining public confidence in pensions for the sake of short-term fiscal gain.
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Harry Mills
Director at Oku Markets
Any measures to simplify and improve accessibility for retirement planning should be praised, but analysing the details of the Bill reveals some troubling aspects. While the intent to deliver better long-term value is clear, proposals that align local government investments with political objectives raise concerns about independence and accountability.
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Riz Malik
Independent Financial Adviser at R3 Wealth
The pension system has become so complex that many people simply disengage until retirement is looming. While the Bill has merits, it is hard to ignore how local government investment options conveniently align with political goals. Backing infrastructure and housing may help plug holes rather than prioritise long term savers.