'Strong case' for automatic consolidation of small pensions, IFS argues

Think tank calls on the government to ‘end and reverse’ the proliferation of small pots

Holly Roach
clock • 4 min read

There is a “strong case” for deferred small pension pots to be consolidated by default, the Institute for Fiscal Studies (IFS) has argued.

In the think tank's report, published today (12 February), the IFS highlights in 2023 there were around 20 million defined contribution (DC) pension pots worth less than £10,000 – containing £30bn in total – with 12.1 million of these worth less than £1,000 which were no longer being contributed into. As such, the IFS has called on the government to "stop and reverse" the proliferation of millions of small pension pots in the UK as they have become "burdensome" and "uneconomical" for both pension providers and savers. The IFS argued there is a "strong case" for small pots to be automa...

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