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.

The plans were confirmed in Wednesday’s autumn statement.

A letter addressed to Nikhil (FCA), signed by Chancellor and Secretary of State for Work and Pensions , said: “Today, we set out a vision for the pensions market in 2030 that ensures there are suitable retirement options for savers supported by a streamlined pension provider market that is continually challenged to deliver value for every member.”