Page 3 - Small Pots News Today

In the Pensions and Lifetime Savings Association’s (PLSA) regular monthly column for Professional Pensions, the trade body’s director of policy and advocacy takes a look at the latest pension measures put forward by the pensions minister and Department for Work and Pensions (DWP).

A ‘pot follows member’ solution is the industry favourite for combatting the small pots problem, a Professional Pensions poll has found.

In this week's Pensions Buzz we want to know which solution to the small pots challenge in defined contribution you would prefer.

The raft of new defined contribution (DC) measures announced by the Department for Work and Pensions (DWP) have garnered a mostly positive reaction from the pensions industry.

The industry is peppered with expensive and sterile small pension pots, but plans are afoot to tackle the problem.

The Department for Work and Pensions has launched a call for evidence in a bid to address the challenge of deferred small pots.

Pensions minister Laura Trott has set out her three key pillars for her time in office – saying she wanted to focus on achieving fairness, adequacy and the predictability of pensions.

The value of lost pension pots in the UK has risen by £7bn since 2018 to reach £26.6bn, according to research by the Pensions Policy Institute (PPI).

The millions of savers who have their workplace pension distributed among numerous small pots are unlikely to feel benefit from pensions dashboards, Age UK says.

So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money, says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme...