Pot for life – advisers concerned about the impact on employees and employers

by | Jan 24, 2024

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Royal London, the UK’s largest life, pensions and investment mutual has found advisers are concerned about the potential impact on both employees and employers of the lifetime provider proposals.  

When asked about the lifetime provider model, nearly two thirds (63%) of the 94 advisers on the Royal London research panel who responded, believe it will make communication more difficult and reduce employer interest in pensions, which will worsen outcomes for the majority of employees.  They also believe it will make it harder for employers to manage their workplace pension scheme with 67% thinking the impact of sending contributions to numerous providers will be problematic. 

However, on a more positive note, an overwhelming 71% don’t think it will increase the risk of scams in the pension industry. 

When asked if it’s a good idea that existing small pots will be automatically allocated to one of a smaller number of consolidator schemes, only 13% think it is, while 24% said a pot follows member approach would be better, and 53% are more cautious and say it will depend how it works in practice and who the consolidators are. 


Jamie Jenkins, Director of Policy, Royal London, said: “We have seen lots of debate about how the lifetime provider model might work, and our research provides a snapshot of what advisers think, considering both corporate and individual clients. 

“Arguably, the most pressing issue is how we address the shortfall of pension provision for the younger generations starting out on their career, rather than rethinking the whole approach to retirement saving at this stage. We should build on the success of automatic enrolment rather than dismantle it.”

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