Small pots group unveils three solutions for DC pension consolidation

Working group lays out plans

Hope William-Smith
clock • 6 min read

Three options to consolidate the mass number of small defined contribution (DC) pension pots in the UK have been outlined by the Small Pots Co-ordination Group (SPCG).

In its spring 2022 progress report today (23 June), the SPCG - convened by the Pensions and Lifetime Savings Association (PLSA) and the Association of British Insurers (ABI) - outlined its ‘pot follows member' model, a ‘default consolidators model', and a ‘member exchange model'. Under pot follows members, savers' deferred pot in the former employer's scheme moves with them to their new company. The saver is also given the opportunity to opt out. The default consolidators model would see certain pots transferred automatically to a small pots consolidator, also with the opportunity for th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

New pensions minister: Advisers cautiously welcome 'radical thinker' Torsten Bell

New pensions minister: Advisers cautiously welcome 'radical thinker' Torsten Bell

Former CEO of Resolution Foundation takes over pensions minister brief

Jenna Brown and Isabel Baxter
clock 15 January 2025 • 7 min read
Retirement confidence: Why are women still lagging behind?

Retirement confidence: Why are women still lagging behind?

'If we don't do better, the gender pensions gap won't be closing any time soon'

Laura Barnes
clock 14 January 2025 • 4 min read
Administrators reach sale deal for PSG's Unity SIPP

Administrators reach sale deal for PSG's Unity SIPP

Scheme operated around 5,500 SIPPs

Jen Frost
clock 10 January 2025 • 2 min read