I recall some describing it as a potential ‘spider’s web of direct debits’ to manage a new pot for life environment.
On the other hand, it can be seen as a practical way to address the problem of employees collecting multiple small pots over their career, and a way to introduce more choice to people at the accumulation stage of the journey.
One thing is for sure, pot for life would fundamentally change things for workplace pension providers and the role of employers.
I am conscious I am writing this piece for FT Adviser and I wonder what pot for life could do for the advisory market.
On balance, I feel it could be a good thing for advisers and I could see stronger relationships between employers and advice firms being formed.
Similarly, I can see from a behavioural point of view some individuals seeking out advice on what to do with their single £100,000 pension pot as opposed to now, with their handful of £20,000 pots.
So where does the Spring Budget leave the pot for life concept?
For a ‘straight from the horse’s mouth’ summary of what the Spring Budget means for pot for life, here’s what the Department for Work and Pensions said following the Budget: “We are enabling individuals to move towards having one workplace pension pot for life – lifetime provider – even when they move between employers.
"We have reached out for feedback and will undertake further analysis and research in advance of responding to the call for evidence."
The call for evidence closed on January 24 and it will be interesting to see the DWP’s response based on the feedback and "further analysis and research". With this in mind, it seems to me it hasn’t been given a green light or a red light as of yet.
Pot for life, and the messages around it yesterday, feels fairly symbolic of where we are in many aspects of political life at the moment.
Pot for life, along with other important initiatives, are sitting on amber, not really going anywhere as we wait to see if the lights will change to red or green.
Mark Ormston is director of propositions and corporate partnerships at Retirement Line
