If you are retirement planning in Cheshire, stand by for new rules that could help address the issue of lost pension pots.
As things stand, as many as 1.6 million people could be missing pension pots – which, as people’s lives change, can be easy to lose track of over time.
Research by consumer watchdog Which? has found that workers on average accumulate anything up to 11 separate pension pots over their careers. According to the Association of British Insurers (ABI) and the Pensions Policy Institute (PPI), there is across the UK some £26.6 billion sitting in ‘lost’ pension funds.
A fresh structure for pensions, however, has been promised by the Money and Pensions Service to simplify this process, with a new ‘pensions dashboard’ proposed as a catch-all solution to help people centrally manage their entire retirement savings via one online platform.
While the idea was originally floated back in 2016, the new system is now finally being rolled out, with a scheduled completion deadline in October 2026.
It is envisaged that schemes will gradually be integrated with the dashboard in different stages, starting with the biggest ones in April 2025, followed by the smallest by September next year. However, some consumers may have to wait until 2027 before they have full access to all the dashboard features.
The Department for Work and Pensions (DWP) is advising pensioners over 66 to claim an additional £13,170 with a simple online application. This could unlock, on average, approximately £4,200 per annum in Pension Credit on top of extra support for heating bills via a Warm Home Discount.
If you have any questions regarding your retirement, speak to the team at Hartey Wealth Management today.
