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Millions of workers across the UK could see their pensions increase by up to 60%

ended 22. October 2025

Millions could benefit from new regulations set to deliver lifelong income security, it has been announced. 

Research shows Collective Defined Contribution schemes could boost retirement incomes by up to 60% while providing more security.

Government is reforming the pension system as part of its Plan for Change to ensure higher retirement incomes and stronger economic growth.

Unlike Defined Contribution (DC) schemes, CDCs pool pension schemes into a collective fund giving workers regular pension payments for life, more security and higher average retirement incomes throughout retirement when compared to individual pension pots.

  • What do you think about the announcement?
  • Do you agree with the figure that it will boost incomes by up to 60%? 
  • Do the figures stand up?
  • Any other thoughts.

Responses by 3pm.

2 responses from the Newspage community

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Editor
Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
A 60% pension boost makes for a great headline but the reality may be far less golden.” While Collective Defined Contribution (CDC) schemes are being hailed as a breakthrough for UK pensions, I’m not convinced the benefits are as clear-cut as claimed. The idea of pooling risk and smoothing returns has merit, but the suggested 60% uplift in retirement income feels overly optimistic based more on modelling than market reality. This move may also conveniently channels pension savings into UK infrastructure and companies, which may help the economy but raises concerns about transparency and independence. With so much positive noise around CDCs, it’s important to remain cautious: the concept could improve retirement security, but without robust governance and honest communication, it risks becoming another policy that overpromises and underdelivers.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Pooling pensions through collective schemes could smooth returns, cut admin costs, and channel more investment back into the UK economy after years of pension capital flowing overseas. Only around 20% of Defined Contribution assets are now invested in the UK, down from 50% a decade ago.

Torsten Bell’s focus is not just on boosting returns for savers but on supporting the chancellor’s wider growth strategy. Unlocking the trillions held in UK pensions could help tackle one of the economy’s biggest challenges by improving access to capital for private and public businesses.

It makes sense as part of the government’s plan to drive long-term growth and retirement security. However, claims of a 60% boost in pension income should be independently verified, with clear evidence of how those figures were calculated.


Source of data:
https://www.gov.uk/government/publications/pension-fund-investment-and-the-uk-economy/pension-fund-investment-and-the-uk-economy