Retirement savers could face diminished returns under sweeping pension reforms proposed by Labour Party Chancellor Rachel Reeves, raising concerns among industry experts about the potential unintended consequences for millions of workers.

Under new legislation outlined in the Government’s Pension Schemes Bill, a major restructuring of workplace pensions is set to take place. Central to the proposal is the creation of large-scale consolidated pension funds—dubbed “megafunds”—with a minimum value of £25 billion each.

Butpensions experts and financial analysts have voiced serious reservations. Rachel Vahey, head of public policy at AJ Bell, cautioned that "megafund members may find that the investment of their hard-earned pension pots in riskier private equity could mean they end up worse

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