'Strong case' for automatic consolidation of small pensions, IFS argues

Think tank calls on the government to ‘end and reverse’ the proliferation of small pots

Holly Roach
clock • 4 min read

There is a “strong case” for deferred small pension pots to be consolidated by default, the Institute for Fiscal Studies (IFS) has argued.

In the think tank's report, published today (12 February), the IFS highlights in 2023 there were around 20 million defined contribution (DC) pension pots worth less than £10,000 – containing £30bn in total – with 12.1 million of these worth less than £1,000 which were no longer being contributed into. As such, the IFS has called on the government to "stop and reverse" the proliferation of millions of small pension pots in the UK as they have become "burdensome" and "uneconomical" for both pension providers and savers. The IFS argued there is a "strong case" for small pots to be automa...

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

Gender pensions gap to 'keep rising' as contribution levels fall

Gender pensions gap to 'keep rising' as contribution levels fall

More women are ‘contributing less’ to DC pots, with men having pots double the size

Jasmine Urquhart
clock 11 February 2025 • 2 min read
Celebrations on ice: Pensions over-taxation issue not fixed yet

Celebrations on ice: Pensions over-taxation issue not fixed yet

'I'm keeping my celebrations on ice as the biggest issue is still unresolved'

Lisa Webster
clock 11 February 2025 • 4 min read
DB pension advice: Redress liabilities dip below 5% of transfer values

DB pension advice: Redress liabilities dip below 5% of transfer values

First Actuarial found ‘considerable drop’ in financial risk associated with DB redress

Holly Roach
clock 05 February 2025 • 2 min read