Workplace Pensions

The Government is committed to the consolidation of small workplace pension pots, when in the best interests of savers. The Pension Schemes Bill 2025 was introduced into Parliament on the 5 June. This includes measures to address the growing issue of deferred small pots, which normally arises when individuals change jobs and accumulate multiple pots over their working lives.

This will ensure workplace pension pots, initially worth £1,000 or less are automatically consolidated, unless members choose to opt-out. This will address the 13m stock of deferred small pots, and any future small pots that are created. As announced in our recent publication, ‘Workplace pensions: a Roadmap’ The report can be found here: https://www.gov.uk/government/publications/workplace-pensions-a-roadmap/workplace-pensions-a-roadmap#roadmap.

However, savers do not need to wait for legislation to benefit from consolidation. Currently, individuals can transfer and consolidate their pension pots themselves through a member-initiated transfer.

This will also soon be aided by the introduction of pensions dashboards. Once launched, pensions dashboards will allow people to find and view their pensions, including State Pension, securely and in one place online. This will help people to reconnect with each of their pension pots and better plan for retirement.