In response to the press release issued this morning by the DWP on the plans to introduce a small pots consolidator that combines pensions worth less than £1,000, Pete Glancy, Head of Pensions Policy at Scottish Widows has provided the following comment.
Pete Glancy, Head of Pensions Policy at Scottish Widows commented: “The proposal to consolidate small pots will help reduce industry operating costs and could lead to lower charges in the future for retirement savers. Reducing the number of smaller pots could also help boost engagement levels, with savers less likely to feel overwhelmed by the number of pots they have from previous employers.
Higher levels of engagement should translate in the longer-term to better performance and improved decision making at the decumlation stage, as consumers become more informed. There’s still a lot of work to be done sifting through the technical aspects needed to make this work, which could take time, but we will continue to work with the government as it progresses.”
