Proliferation of pension pots is a significant challenge for the UK pensions sector. Former pensions minister
Steve Webb predicted there could be more than 50 million dormant DC pots in the UK by the middle of the century unless action is taken. But moves to introduce a so-called pot-follows-member model, which would have seen auto-enrolment savers take their pot with them from provider to provider when they changed jobs, were put on pause in 2015.
Consolidation of pots is generally seen as a positive step for individuals, as it can increase engagement, make understanding overall risk easier and, in some circumstances, lead to keener pricing.
Three quarters of consultants and advisers think employees should consolidate their pension pots when they move jobs.