Kate Smith, Head of Pensions at Aegon, comments on the latest report from the Small Pots Co-ordination Group:
“Small pension pots are a growing pain for both customers and providers, and it’s unlikely that one solution will fix this issue. Member-initiated solutions aren’t likely to solve this issue due to the scale of the problem and lack of member engagement with their pensions. The complications around the increase in the normal minimum pension age from 55 to 57 makes solutions even more challenging.
“We agree that the only way forward would be to implement market-wide automated automatic low-cost solutions. But this needs the Government to intervene and legislate and the FCA to introduce new rules. Without these, it hard to see viable solutions being put in place any time soon.”
