Marvin OnumonuPension scheme funding has hit record highs, with up to £160bn now available to help boost growth across the UK, according to the Department for Work and Pensions (DWP).
Most defined benefit schemes are now running at a surplus, meaning they have more assets than they need to pay out promised pensions.
Since 2010, the number of schemes with enough funding in place has tripled.
The Government’s new pension schemes bill is set to let trustees and employers safely release part of these surpluses, making more money available for investment and for scheme members.
Deficit payments by employers have dropped sharply, freeing up over £10bn a year in cashflow.
This could support higher wages and business investment.
Pensions Minister Torsten Bell said: “The record funding levels for Defined Benefit pension schemes is excellent news for Britain’s employers and workers.
“Fast falling deficit payments offer employers a cashflow boost of over £10 billion a year, that can support higher wages and investment.
“And growing scheme surpluses can also be used productively.”
Bell added: “Currently some trustees are held back from sharing the benefits of a surplus, but our plans will allow all schemes to safely do so, delivering greater investment across firms and benefits for savers.”
