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New advice to help savers make the most of their pensions

New advice to help savers make the most of their pensions New advice to help savers see the full benefit of their pensions when they retire has been published by the government today. From: 17 December 2020 An industry working group, chaired by the Department for Work and Pensions, has published recommendations on how to ensure the growth in small pension pots driven by automatic enrolment does not disadvantage savers. Automatic enrolment has extended workplace pension coverage to the mass market, including young people and low earners - many for the first time. In 2019/20, it was estimated an extra £18.8 billion per year was being saved into workplace pensions.

Pension chaos as 50 million pots could be LOST unless action taken

It also means small pots could be lost or left deferred and slowly eroded due to pension scheme charges. Ministers say that without change, it is feared millions of pots could be lost over the coming decades. Modelling by the Department for Work and Pensions in 2012 estimated that automatic enrolment was expected to create around 50 million dormant pension pots by 2050. Minister for Pensions Guy Opperman said: Given the risks that the growth of small pots presents to savers and their ability to plan for retirement, it is vital that we find a solution. “Savers deserve to know that their hard-earned pension pots will be working for them through their career and ready for them when they retire.”

New advice to help savers make most of their pensions

New advice to help savers make most of their pensions
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