Pensions - Articles - Aegon comment on the small pension pots working group report

 Kate Smith, Head of Pensions at Aegon said: “The rapid proliferation of small pension pots is a growing issue for both pension scheme members, pension schemes and the pension industry. Members face losing track of numerous small pension pots as they move from job to job, and they risk the value being eroded by charges. As we look ahead, the number of small frozen or ‘left behind’ pots is set to outstrip the number of active pots, increasing costs for pension schemes and providers. This is a consequence of the success of auto-enrolment and the fluid UK job market. 

 “Every single pound of pension saving counts and it needs to be made easier to consolidate small pension pots, using a combination of automated and member-initiated solutions. No one solution is likely to truly address this issue and a number of different approaches will need to be taken, as identified in the report. Making it easier to consolidate pension pots could make a real difference to savers’ retirement outcomes. And cutting administration costs, specifically the costs of making pension transfers, should also over time have a positive impact on charges. Solutions will take time to develop and test, and this report is just the beginning of the journey. “
  

  DWP’s Small Pots Working Group report