Overview

• The Pension Schemes Bill will automatically consolidate small pension pots worth £1,000 or less into a single scheme managed by authorized providers.
• The reform is expected to save the pensions industry £225 million annually in administrative costs and reduce complexity for savers.
• Average pension savings could increase by around £1,000, with potential boosts of up to £11,000 for some savers, benefiting over 15 million people.
• Savers will retain the right to opt out of the automatic consolidation process if they choose to manage their pots independently.
• Experts have raised concerns about potential tracking issues and risks of consolidating funds into the wrong provider, calling for further safeguards.