Chancellor, Rachel Reeves, has launched a “landmark” review of the pensions landscape, confirming that the review is set to consider further steps to improve pension outcomes, including assessing retirement adequacy, and increase investment in UK markets.

The review, which will focus initially on investment, will aim to increase pension pots and tackle waste in the pensions system, building on the new Pensions Schemes Bill already confirmed in the King’s Speech.

In particular, Reeves revealed plans to “unlock” billions of pounds of investment from defined contribution (DC) schemes alone and pension pots for savers, suggesting that the changes could also boost DC savings for individuals over £11,000.

In addition to this, the review, in partnership with the Minister of State at the Department for Levelling Up, Housing and Communities, Jim McMahon, will look at how to unlock the investment potential of the £360bn Local Government Pensions Scheme, as well as how to tackle the £2bn that is being spent on fees.

Starting later this year, the review will be led by the new Pensions Minister, and the first ever joint Treasury and Department for Work and Pensions Minister, Emma Reynolds, although both Reeves and Reynolds will join an industry roundtable today (22 July), to mark the beginning of a period of “intensive” industry engagement.

Commenting on the review, Reeves said: “Despite a very challenging inheritance, this new government is getting on with the job of delivering our mandate to get the economy growing so we can make every part of our country better off.

“The review we are announcing is the latest in a big bang of reforms to unlock growth, boost investment and deliver savings for pensioners. There is no time to waste. That is why I am determined to fix the foundations of our economy so we can rebuild Britain and improve people’s lives.”

Adding to this, Reynolds said: “As the first ever joint Treasury and Department for Work and Pensions Minister I am uniquely placed to tackle the twin challenges of productive investment and retirement outcomes.

“Over the next few months the review will focus on identifying any further actions to drive investment that could be taken forward in the Pension Schemes Bill before then exploring long-term challenges to ensure our pensions system is fit for the future.

“There is so much untapped potential in our pensions markets, with an industry worth around £2trn. The measures we have already set out in our Pension Schemes Bill will help drive higher investment and a better deal for our future pensioners.”

The announcement was made ahead of the new government’s first Growth Mission Board on Tuesday (23 July), which will be chaired by the Chancellor and aims to drive the government’s work to achieve the highest sustained growth in the G7.

New measures announced ahead of this also included efforts to fix planning system, as well as the creation of a new National Wealth Fund and the overhaul of the listings regime to boost UK stock exchanges.

Commenting on the pensions review, Deputy Prime Minister, Angela Rayner, added: “After putting in years of hard graft serving their communities, the very least our frontline workers deserve - millions of whom are low paid, millions of whom are women - is dignity and security in retirement.

“That’s why we want to make sure their hard-earned money works harder for them so we ensure they receive the pensions they have earned, whilst unlocking growth across our economy.”

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