Pension boost of £1,000 per year for workers under new plans from Chancellor Jeremy Hunt

The Prime Minister has announced that a TYPICAL earner’s pension could rise by more than £1,000 a year under radical new schemes.

Employee retirement plans received a boost when Jeremy Hunt announced his Mansion House Reform this evening.

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These changes will increase the common earner’s pension by 12 per cent, bringing the total increase to £16,000 for savers over the course of their careers.

This intervention could unlock up to £75 billion of new investment in high-growth businesses.

There has been concern about the low level of pension funds investing in UK assets relative to international companies.

Moves will be made to make it more similar to Australian equivalent schemes investing in the private market ten times more than UK schemes.

The UK pension market is the largest in Europe and is worth more than £2.5 trillion. Major companies such as Aviva, The Scottish Widow and Aegon are among the participants.

Top pension companies will also commit to allocating 5% of their assets to unlisted stocks by the end of the decade.

Under the new framework, underperforming pension schemes will be transformed into larger, better performing schemes.

It comes as analysis shows that over a five-year period, a saver with £10,000 could lose £5,000 if a plan performs poorly.

Mr Hunt said: “British pensioners will benefit from UK business success. By unlocking investment we will increase retirement income by more than £1,000 a year for ordinary earners over their career.

“This also means more investment in our most promising companies, driving growth in the UK.”

Welfare Secretary Mel Stride said: “British workers should trust that their pension savings are working as hard as they are.

“Our reforms will benefit savers and society – unlocking investment in the UK’s pioneering businesses, growing the economy and helping record numbers of people in the UK. These people save their pension to reach the retirement age they want.”

Meanwhile, Mr Hunt will launch a red fire on the remaining Brussels laws to make City’s match relevant for the future.

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Hundreds of outdated EU laws will be scrapped to help bring rockets into the UK economy by boosting investment.

The Prime Minister hailed ‘common sense’ changes to embrace the UK’s newly discovered Brexit freedoms to boost financial services.