ii comments on DWP plan to consolidate small pension pots
Understanding and engaging with your pension is crucial to avoid sleepwalking into an unsatisfactory retirement, writes Myron Jobson.
24th April 2025 10:52
by Myron Jobson from interactive investor
Commenting on reforms to combine small pension pots, revealed todayby the Department for Work and Pensions, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The message is clear: it is time to get serious about saving for retirement. In a world where workplace pension schemes that provide a guaranteed income for life have (largely) gone the way of the dodo, the onus is increasingly on individuals to take charge of their pension savings.
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“Understanding and engaging with your pension is crucial to avoid sleepwalking into an unsatisfactory retirement. Initiatives like the proposed small pots consolidator is part of broader efforts - including the long-anticipated pensions dashboard and the now-abandoned 'pot for life' proposal - aimed at getting people seriously engaged with their long-term savings.
“But there’s no need to wait for government action to get started. Savers can already consolidate old workplace pensions into a self-invested personal pension (SIPP), giving them access to a vast range of investment options and potentially lower fees. Flat-fee structures, in particular, can be cost-effective for those with pensions that could turn into a sizeable pot once brought together as the charges remain fixed even as your pension grows. Taking ownership of your retirement savings now could make a world of difference later on.”
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