As a professional in the AE industry and with a timeline in Financial Services going back just a little too far to be comfortable, I was shocked recently by an Adviser introducing me to a colleague as “This is Russell – we have worked together for 25 years!” Every month we see more and more employees joining their Employer’s Qualifying Workplace Pension Scheme for the first time and recently we are seeing more and more members being created in new schemes because their employer has decided to switch to a new pension provider. This is a new phenomenon in our industry as lots of employers were panicked into unsuitable pension arrangements first time around. In fact, we spend quite a lot of time these days helping advisers and employers manage the QWPS switch – becoming known as the “Secondary Market”. In truth with robust systems and well-proven process managing the switch while replacing poor administration and record keeping with good is not that difficult as we have the experience and secure systems to achieve the required outcome. However, one has to spare a thought for the employees who without access to a regulated adviser which sadly is true of the majority of workplace pension schemes who are left in limbo.
I recently came across an article in Mail Online dealing with an issue which I believe is going to get bigger each year as more and more employees move employers leaving behind small pots and just forgetting about them over time. This is of course already a problem in the Personal Pension market because of company consolidation, name and brand changes – but projecting this forward over the lifetime of some of our newly enrolled employees the outcome can only be millions of pounds of lost pension pots and the inevitable impact on individual retirement options.
True a new government website was launched by Baroness Ros Altmann the than Minister of Pensions the DWP Press release of 9th May 2016
But ….. does anyone know about this? In fact, if one Googles “Lost Pensions” top of the search engines will be law firms offering to help!