In the latest episode of the Money Marketing podcast,we discuss what has become of the pot-follows-member initiative.
Money Marketing pensions reporter Sam Brodbeck talks to Altus director Ben Cocks and Pension PlayPen founder Henry Tapper about the options for reform and the challenges for implementation.
Former pensions minister Steve Webb favoured the model as a way to stop the build-up of millions of forgotten pension pots created by auto-enrolment.
However, there were – and remain – critics of the system, which automatically moves savings of £10,000 or less to a member’s new job.
The new Government is yet to reveal whether it is sticking with Webb’s plan, which is due to be rolled out in October 2016 on an opt-in basis.
Pension freedoms has brought the issue into even sharper focus. Pension transfers have come under the spotlight as savers struggle to access their pots, with the Treasury launching a consultation on possible barriers to the freedoms.
Ben Cocks talks sense, pot follows member is a good idea as the FS industry is making a fortune out of transfer fees! Plus you have to consolidate to take pension freedoms each pot comes with a rainforest worth of paperwork and warnings to put you off.