Advising small pots

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Fiona Murphy explores what steps advisers and employers will need to take to tackle the small pots issue on the eve of auto-enrolment and the RDR

The small things in life can often be the most overlooked, and small pension pots are no exception. Research by the National Association of Pension Funds suggests there are about 700,000 pots that have been orphaned with an average fund size of £2,000. It is likely that many savers will come to retirement with small pension pots from different employer schemes and maybe a personal pension arrangement. No wonder it is difficult to keep track. Added to that, auto-enrolment will open the floodgates to more savers than ever before. Temporary workers or job-hoppers will enter the fold f...

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