UK public sector pension funds are not big enough to generate good returns for British savers, Chancellor Rachel Reeves has told the BBC. Her comments come as the government reveals plans to merge the UK's local government pension scheme, a group of funds which together manage £354bn in investments, into a handful of "pension megafunds".

Chancellor Rachel Reeves is planning a major shake-up of the pensions market with "megafunds". Ms Reeves has said she is "going for growth" and the plans will help to unlock tens of billions of pounds of investment in business and infrastructure.

THE government is set to announce huge plans to create “pension megafunds” in a bid to boost both savers’ retirement pots and investment in the UK. Chancellor Rachel Reeves will

Chancellor of the Exchequer Rachel Reeves said the UK will introduce legislation next year to pool £1.3 trillion ($1.7 trillion) of pension savings into a series of “megafunds,” as the new Labour government tries to deliver on its pledge to boost private investment and economic growth.

Rachel Reeves’s radical pension reforms risk putting retirements in danger and leaving taxpayers “on the hook” if investments go wrong, experts have warned. The Chancellor says she is “going for growth” with major reforms she will announce on Thursday in a Mansion House speech.

The chancellor wants to merge the UK's pension funds, but critics worry about the impact on savers.

Chancellor of the Exchequer Rachel Reeves said the UK will introduce legislation next year to pool £1.3 trillion ($1.7 trillion) of pension savings into a series of “megafunds,” as the new Labour government tries to deliver on its pledge to boost private investment and economic growth.

Rachel Reeves will tear up workplace pension rules as part of a broader shake-up that the Chancellor claims will unlock up to £80bn in investment.

Chancellor Rachel Reeves is to set out what she is calling the "biggest pension reform in decades" in an attempt to boost growth. The government wants to merge the UK's 86 council pension schemes into a handful of "pension megafunds".