Pension pots for life ‘could boost savings culture but be admin headache’
Pension savers could have a “pot for life” under plans to tackle the problem of people building up lots of smaller pots when they move from job to job.
The Government wants to hear evidence on a lifetime provider model, which would allow people to have contributions paid into their existing pension scheme when they change employer, providing greater control over their pension.
Currently, employees are automatically placed into the workplace pension scheme chosen by their employer. Older pension pots may end up being forgotten about by workers or languishing in schemes with poor returns.
Some estimates suggest the average worker changes employer around 11 times during their career, with each job hop potentially creating a new pension scheme with a
