Small pension pots to be consolidated, says DWP

Workplace pension schemes worth less than £1,000 that become “deferred” when a saver changes jobs will be consolidated under a new system

Roll of twenty pound notes growing in flowerpot
(Image credit: Getty images)

The Department for Work and Pensions (DWP) has set out plans to tackle the £27 billion “lost” pension pots problem that occurs when a worker starts a job at a new company and the pension becomes “deferred”.

Default “consolidator” schemes will be created to sweep up small deferred pension pots worth less than £1,000.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.