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Plan to introduce collective pension pots

SHARED pension pots that can boost the value of savings by up to 30 per cent would be introduced under a Labour government.

New laws would allow company schemes to operate as one large pool that all members pay into instead of individual funds, Rachel Reeves announced.

The shadow work and pensions secretary claimed the reforms, influenced by schemes in the Netherlands, Denmark and Canada, would allow members to benefit even after they have retired.

Instead of pensioners converting their ring-fenced savings into income they would be paid out from the joint kitty.

In a speech to the Resolution Foundation, Ms Reeves said Labour was launching an independent taskforce, chaired by Pensions Institute director Professor David Blake.

She said: "New forms of collective pensions have increased the value of pension pots by up to 30 per cent.

"A Labour government would legislate to enable these schemes in the UK, and I will ask the taskforce to look at how these schemes could best be introduced."

Neil Carberry, CBI director for employment and skills, said it was "not clear that automatically enrolling this group of low earners is necessarily in their long-term interests".

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