The UK's Pensions Regulator has expressed its support for government reforms aimed at creating larger pension schemes, which are expected to improve investment capabilities in the UK economy.

Nausicaa Delfas, the regulator's chief executive, has highlighted that these reforms will lead to a consolidated market with fewer, but larger, pension schemes. This consolidation is expected to provide better value for money for pension savers and raise standards across the sector.

Finance Minister Rachel Reeves has announced plans to establish "megafunds" with potential investments of up to £80 billion ($102 billion), which will significantly change the UK pensions landscape. The regulator will use its new powers to ensure that these larger schemes not only fulfill their promises but also encourage innovation in pension models.