Widespread small pension pot consolidation intended for 2025-26
04 October 2021
The Small Pots Cross-Industry Co-ordination Group has published a roadmap, which includes a date for the implementation of a mass-scale consolidation model for small pension pots, in its latest progress report. This is scheduled to take place in 2025-26.
This is the first progress report that has been released since the group formed back in March 2021. The group’s main purpose is to find a solution to the ever-increasing issue of small deferred pots in the Defined Contribution (DC) pension system.
The report reveals that there are three million deferred savers invested in default options, holding pension pots with values below £100. There are also 10.5 million savers with pot values of less than £1,000. The working group is currently focusing on finding solutions for pots of less than £500.
When addressing existing small pension pots, the eventual solutions must also work to target the spread of new small pension pots.
Read the report in full here.
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