After months of deadlock in the Lords, the UK government pushed through the Pension Schemes Act, its most sweeping reform since 2015. The legislation aims to enlarge pension pots, tighten efficiency and push more ambitious investing. DWP’s press release claimed the changes could add a “retirement boost of £29,000” for millions, a figure that raised eyebrows among industry watchdogs and could reshape pension market dynamics.

A key provision relaxes rules on defined‑benefit schemes, letting trustees return surplus assets to corporate guarantors now that higher rates render many plans over‑funded. Pensioner groups are already lobbying for a share of those excesses. Meanwhile, multi‑employer master trusts must reach a £25bn asset floor, a move designed to force consolidation and deliver scale‑driven cost cuts, potentially slashing fees for members.

The act also mandates that defined‑contribution funds allocate 10% of assets to private investments, half of which must be UK‑based, a five‑fold increase on current levels. Critics, including BlackRock chief Larry Fink, argue the push infringes trustees’ fiduciary duties, while Treasury minister Torsten Bell frames it as a “reserve power”. The requirement could reshape asset‑allocation strategies across the industry.