Some pension savers could see their retirement funds boosted as part of Government reforms enabling more people to save in big, collective pots.

Regulations for collective defined contribution (CDC) schemes are set to be laid, to allow their expansion to more employers.

The initiative enables employers to pool multiple pension schemes into a collective fund, giving workers regular pension payments for life.

The Government said the funds can potentially offer more security and higher average incomes throughout retirement, when compared with people saving into individual pension pots.

Collective defined contribution schemes could potentially boost retirement incomes by up to 60%, it added.

Pooling funds enables schemes to make bigger investments in assets such as UK businesses and infrastructure projects, helping to drive economic growth, the Government said.

It is also launching a consultation on "retirement CDC", which it said would allow people who have saved into a defined contribution (DC) scheme to transfer their pension pot into a CDC scheme at retirement.

It said the aim is to see more people receive a regular income for life, without having to worry about managing their retirement money themselves or working out how long their savings need to last.

Pensions minister Torsten Bell said: "Too often people approaching retirement are left navigating complex choices and shoulder risks they shouldn't have to face alone.

"Collective pensions offer a better deal, one where risks are shared, returns are smoothed, and retirement incomes are stronger and paid for life.

"By expanding CDC to more employers and consulting on retirement CDC, we are helping build a fairer pensions system that gives people confidence their hard-earned savings will last and they can enjoy their retirement."

The move builds on the progress made by the Royal Mail Collective Pension Plan, which has more than 100,000 members, the Government said.

Zoe Alexander, executive director of policy and advocacy at Pensions UK, said: "Multi-employer CDC schemes have the potential to boost retirement savings by sharing risks between savers.

"Success depends on striking the right balance between strong protections for members, simplicity and fairness of scheme design.

"We agree with the Government that innovation in CDC carries huge promise for savers and are pleased that this Government is supporting the development of both multi-employer and at-retirement CDCs."

Nausicaa Delfas, chief executive of the Pensions Regulator, said: "We are all working towards turning a savings system into a pensions system which provides a sustainable income through later life.

"Innovative solutions like retirement-only CDC schemes could play a part in this, and I'd encourage people to get involved with the upcoming consultation to ensure their ideas are heard."

Government green-lights 'collective' pension schemes