Chancellor Rachel Reeves will today announce a pensions change that could provide a massive £160billion boost for the economy.
She is to loosen restrictions on defined benefit pensions, which include so-called final salary pensions.
It’s part of her drive to get the UK economy growing after the most recent figures showed a disappointing rise in GDP of just 0.1% in November.
And some of the money could go to pensioners themselves.
Rachel Reeves will loosen restrictions on some pensions (Image: Getty)
The Chancellor will also set out plans for a building spree expected to include expanding Heathrow Airport in a major speech.
Defined benefit pension schemes are expected to hold assets worth £800 billion by the end of the decade but there are strict rules about how the money can be invested.
Ms Reeves will give fund managers in well-managed schemes more freedom so that surplus money can be invested in the economy. It will also become possible to give more benefits to pension fund members.
Around three quarters of funds are in surplus, worth £160bn.
