- Anthony Browne MP brought a Ten-Minute Rule Bill in Parliament today on giving employees the right to have their employer pay their pension contribution to a pension of their own choosing.
- This means you can keep the same pension when you move jobs rather than having to get a new one.
- This will make it easier to keep track of pension savings which can boost engagement.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown:
“We would like to thank Anthony Browne MP for raising this important issue today – it is an approach Hargreaves Lansdown has supported for many years. We believe that it is a vital part of the puzzle to drive up engagement with pensions, especially with so many people saving in defined contribution pensions.
It could make a demonstrable improvement in the number of small pension pots we see in the market and people would be less likely to lose track of what they have. With the PPI estimating there is more than £26bn of lost pension assets washing around the system this is a huge problem that needs to be addressed. Accumulating savings in one pension will also help people engage more easily as they have a better idea of exactly how much they have, and this will aid decision making and improve retirement outcomes.
We cannot wait until retirement age before we engage people with their pension savings and strengthening the relationship between the individual and their pension provider will only help with this.”