Birkin explained that from the small pension pots solution to pensions dashboards, there is plenty of focus on improving member experience and outcomes and Isio would rather that the government sees the current set of policies to fruition first before thinking about introducing the next set of reforms.
A DWP spokesperson said: “The average worker will have around 11 jobs over the course of their career, meaning they may continue to accrue multiple pension pots.
“This creates a risk of people losing track of their pension savings and creates cost and inefficiency in the system.
“That is why we are exploring if a lifetime provider model could improve outcomes for savers, as well as running a number of industry workshops and attending stakeholder events to get a range of views on the best approach.”
Adviser view
Advisers also have concerns about how the proposals will impact employees and employers.
When asked about the lifetime provider model, nearly two thirds (63 per cent) of the 94 advisers on the Royal London research panel, believed it would make communication more difficult and reduce employer interest in pensions.
Royal London found advisers believed it would make it harder for employers to manage their workplace pension scheme with 67 per cent thinking the impact of sending contributions to numerous providers will be problematic.
When asked whether it was a good idea that existing small pots will be automatically allocated to one of a smaller number of consolidator schemes, only 13 per cent said it was.
While 24 per cent said a pot follows member approach would be better, and 53 per cent were more cautious and saying it will depend how it works in practice and who the consolidators are.
sonia.rach@ft.com
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