What the government's defined benefit pension scheme raid means for you

The government wants to let companies use extra final salary scheme funds to boost the economy but there are risks involved. What does it mean for you if you have a defined benefit pension?

pension savings
(Image credit: Getty Images/Thitima Uthaiburom)

Defined benefit (DB) pension scheme rules are set to be overhauled in an attempt to encourage large employers to reinvest surplus funds and even boost staff wages.

In their latest attempt to foster economic growth, prime minister Keir Starmer and chancellor Rachel Reeves , have proposed lifting restrictions on how well-funded occupational DB pensions that are performing well can invest their surplus funds.

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.