New research from PensionBee, a leading online pension provider, reveals that 75% of savers in the UK would consider opting for a ‘pot for life’ pension, a proposal put forward by the government in the Autumn Statement to remedy the proliferation of lost pots in the UK.
When asked to share their preferences between a ‘pot for life’ or an alternative ‘stapling’ model, the ‘pot for life’ solution was considered significantly more popular (73%) than ‘stapling’ (22%).
Stapling is an approach used in Australia, whereby employers pay workplace pension contributions into the employee’s first pension (typically the default fund from their first job) unless they say otherwise. These are stapled to the employee and the pot follows them from job to job.
For individuals hesitant to choose a ‘pot for life’ pension, the most influential factor in potentially changing their opinion was a ‘clear provision of support from employers about what this is and how it works’ (45%).
This was followed closely by a desire for ‘the provision of clear education from the government’ (42%) and ‘a comparison site or service to help choose a plan that’s right for their needs’ (36%).
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “The reality is people change jobs, pensions get left behind, some are forgotten and retirements suffer.
“Having all of the pensions someone acquires in one place makes sense - the method for how this happens is the subject of debate.
“The verdict from the public so far appears to favour the ‘pot for life’ model, which allows people to choose their own provider and ask their employer to pay in.
“But the research also showed that provision of information from employers or Government would be key to uptake.”.
Table 1: Would you consider a ‘Pot for Life’ pension? This means you could direct your employers’ contributions into a personally selected pension instead of the default option assigned through Auto-Enrolment.
| Question | Response |
|---|---|
| Yes, I probably would consider a ‘pot for life’ pension | 38% |
| Yes, I definitely would consider a ‘pot for life’ pension | 37% |
| I’m not sure | 19% |
| No, I probably wouldn’t consider a ‘pot for life’ pension | 4% |
| No, I definitely wouldn’t consider a ‘pot for life’ pension | 2% |
Source: PensionBee.. 2,000 UK adults (nat rep). 1,000 asked in November 2023, the following 1,000 asked in February 2024. All numbers have been rounded.
Table 2: Which of these two solutions would you prefer when managing your workplace pension savings?
| Question | Response |
|---|---|
| Employers pay workplace pension contributions into the pension of your choice | 73% |
| Employers pay workplace pension contributions into your first pension (typically the default fund from your first job) unless you say otherwise | 22% |
| None of the above | 5% |
Source: PensionBee, February 2024. 1,000 UK adults (nat rep). All numbers have been rounded.
Table 3: What measures would make you more likely to consider a ‘pot for life’ pension? Select all that apply.
| Question | Response |
|---|---|
| The provision of clear support from employers about what it is and how it works | 45% |
| The provision of clear education from the government about what it is and how it works | 42% |
| The provision of a comparison site or service to help you choose a plan that’s right for your needs | 36% |
| The provision of clear criteria regarding which pension providers qualify as a ‘Lifetime Provider’, and why | 28% |
| The provision of a 10-day pension switch guarantee to ensure reasonable transfer times | 22% |
| None of the above | 13% |
Source: PensionBee, February 2024. 358 UK adults (nat rep). All numbers have been rounded.
