Fiona Murphy looks at the DWP's small pot reforms and asks if they made the right decision.
How to deal with small pots has concerned the pensions industry for some time. The Department of Work and Pensions (DWP) has estimated as people increasingly move job and are auto-enrolled into each new employer's pension scheme, around 4.7 million pots run the risk of being cast adrift by 2050. This would fail consumers who would be unable to build large pension funds and as a result, remain apathetic. Aviva research supported this with half of consumers admitting to not knowing the value of their pension overall and 43% towing four separate pots. It's a problem for successive generatio...
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