What should be done with small pension pots?

The Government has recently announced the results of its consultation on small pension pots and confirmed it favours the ‘pot follows employee' solution. Clearly there is a major issue with small pension pots. Research undertaken in 2010 by The Pension Tracing Service estimates there is £3billion sat in unclaimed pensions, with one in six workers having no idea where their pension is saved. Small scale reforms to current systems clearly would not be enough to resolve the problem. Without further action, the future looks even bleaker with auto enrolment potentially creating 50 million ...