DWP update as significant pension ‘shake-up’ set to take place - are you affected?
The DWP is laying out its plans to change its approach to smaller pension pots, in order to protect Britons and their finances. It has launched a consultation into the matter which would see a change to the way pensions are managed by providers. Many people will have a small pension pot, either from staying in a job for a short period of time, or for other reasons.
Some do not have a constant or steady income from one particular job, which means their pension pot could be substantially smaller than others.
But with pension arrangements often come fees for management and other related costs, which may eat away at a person’s pot somewhat.
Under the Government’s consultation, these kind of fees would be limited in efforts to protect smaller pension pots.
Proposals have included introducing a threshold of £100 or below, where a person cannot be charged a flat fee by their pension provider.
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