UK. Tiny pension pots putting £1bn at risk
Ministers have been accused of ignoring a proliferation of tiny, inefficient pension pots that could drain £1 billion a year from retirement incomes.
The cost of administering millions of trivially small pension pots will rise exponentially because a new pot is created every time someone moves job, Hargreaves Lansdown, the wealth manager, said yesterday.
With the typical employee expected to change jobs 11 times in the course of a career, they can expect to have 11 pots. Couples might have to juggle as many as 20 by the time they reach retirement age if they have not consolidated them.
Tom McPhail, head of pensions at Hargreaves, said: “Every time we change jobs, we’re forced to suspend the pension from our last job and join a…
