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LAST WEEK, CHANCELLOR RACHEL REEVES ANNOUNCED PLANS TO COMBINE SMALLER FUNDS INTO A GROUP OF GIANT MEGAFUNDS IN THE PENSIONS SCHEMES BILL. 13:14, 03 Jun 2025 Prime Minister Sir Keir
Starmer's government has announced a new megafund for pensions, but a finance expert has warned it could shortchange women. Last week, Chancellor Rachel Reeves announced plans to
combine smaller funds into a group of giant megafunds in the Pensions Schemes Bill. These changes are expected to boost pension payments by £6,000 for millions of workers by 2030, but it
might not impact everyone equally. READ MORE: MARTIN LEWIS SHARES 'UNBEATABLE' PENSION 'LOOPHOLE' TO 'DOUBLE YOUR MONEY' Antonia Medlicott, managing director of
Investing Insiders, advised that only a specific demographic will see the benefit. She explained: “The £6,000 figure being thrown around needs to be taken with a pinch of salt, as it is
based on a particular set of circumstances that will not apply to most savers. Article continues below "One crucial factor is that it is based on a man, meaning women stand to gain less
on the whole, as they are more likely to take career breaks and miss out on pension contributions.’’ Women are more likely to work in caregiving roles on a part time basis, meaning they
will make fewer pension contributions. However, the scheme has been used in other countries to varying degrees of success, such as in Australia, so Antonia isn't entirely against the
proposals. She continued: “For example, Australia's superfunds have returned an average of 8.8% over the past decade, compared to the UK's average of 7.6%, recent calculations have
found. "That gap may not sound huge, but over time, that difference could amount to tens of thousands of pounds.” Upon the announcement of the new Pensions Schemes Bill, Rachel Reeves
said: “We’re making pensions work for Britain. "These reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses – the plan for change
in action.” Sir Steve Webb, a former Liberal Democrat pensions minister, said: “The Government has clearly been bold in this area and this opens up the potential for this surplus money to
be used more productively to benefit scheme members, firms and the wider economy.” Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as
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