How have other countries dealt with small, deferred member pension pots?
The Pensions Policy Institute (PPI) has published 'How have other countries dealt with small, deferred member pension pots?'. The PPI was commissioned by the Master Trust Expert Panel, convened by the Department for Work and Pensions (DWP), to conduct an international study, exploring whether other countries have had similar challenges related to multiple pension accounts, and how these have been dealt with.’
The number of deferred pension pots in the United Kingdom (UK) Defined Contribution (DC) master trust market is likely to rise from 8m in 2020 to around 27m in 2035.Member charges often erode small, deferred member pots over time and small pots can be uneconomic for providers to manage. The Government is considering policy options to respond to the growing number of small, deferred member pots.
This report contains three in-depth case studies on Australia, Ireland and the USA, and eight country profiles on Belgium, Chile, Denmark, Israel, Mexico, New Zealand, Norway and Sweden. The conclusions are derived from these studies.