Majority of the industry argues pot follows member is the simplest solution to the issue
The pensions industry says the reforms have the potential to transform the sector
Laura Trott says improving fairness, adequacy and predictability will be central to policy
The industry is peppered with expensive and sterile small pension pots, but plans are afoot to tackle the problem.
Work is focussed on default consolidator model and pot-follows-member
PPI research found a 75% increase in the number of lost pots since 2018
Age UK is calling on the government to ramp up its work on small pots
Industry working group to consider contract- and trust-based ‘push’ and ‘pull’ solutions
Flat fees will be banned on pensions worth below £100 in a bid to end the erosion of small pots, the Department for Work and Pensions (DWP) has confirmed.
Tim Gosling says the small pots working group’s report is a reasonable first step that recognises diverse views to come up with a way forward.