The Pensions and Lifetime Savings Association (PLSA) comments on the Small Pots Working Group Report.
Lizzy Holliday, Head of DC, Master Trusts, and Lifetime Savings, PLSA, said: “Small pots generally don’t work for savers for a number of reasons – such as the impact of charges on multiple small pots for a saver which can be detrimental over time, and the possibility of savers losing track of their savings. Addressing these issues has been at the core of PLSA’s small pots project – including our own Master Trust Working Group.
“We welcome the additional impetus and ambition from government on this key issue, and its engagement with us and the industry. The report is consistent with our earlier work – and we welcome the direction of travel and solutions indicated – such as focussing on options that work well with Automatic Enrolment, member exchange pilot, and moving to improve pension administration to facilitate cheaper, more efficient, transfers.
“The PLSA are excited to continue working with our members next year on implementing the actions recommended in the roadmap as well as with the government and the wider industry on shaping key next steps. Crucial to these is the need for more developed cost benefit analysis – to consider the impacts on saver journeys and the shape of the pensions landscape of the various models that remain in play, prior to further government decisions.”
Mark Smith, Senior PR Manager
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Steven Kennedy, PR Manager
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