Lost treasure: dormant DC pension pots

By Dan Bowman

The advent of auto-enrolment will see millions of people in the UK save into a workplace pension for the first time. While this drive to help people build up sufficient retirement income is a step in the right direction for the private pension system, it does carry some inherent risks. Every time someone changes job there is a risk they will leave behind a pension pot in the previous employer’s pension scheme and forget about it. As the number of small defined-contribution (DC) pension pots is set to increase significantly as a result of auto-enrolment, forgotten pots could result in insufficient retirement savings. The government estimates that, without further reform, auto-enrolment will create up to 50 million dormant pots by 2050.

This does not sit well with the government’s commitment to support people in building up sufficient retirement income. So it was no surprise when it consulted in 2011 on options to create an automatic transfer system to help pension savers keep track of small DC pots. Since then it has been working with the pensions industry to find a way to make this system work. Further details were recently provided in its April 2013 paper entitled Automatic transfers: consolidating pensions savings

If you are registered and logged in to the site, click on the link below to read the rest of the Stephenson Harwood briefing. If not, please register or sign in with your details below

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Stephenson Harwood

View more briefings from Stephenson Harwood

Analysis from The Lawyer

Browse This Firm’s


1 Finsbury Circus

Turnover (£m): 121.00
No. of lawyers: 341 (UK 200)
Jurisdiction: UK
No. of offices: 5
No. of qualified lawyers: 86 (International 50)
No. of partners: 26