PFS Conf: Webb mulls multi-pension consolidation plan

Pensions minister Steve Webb has hinted at the potential development of a national transfer system to help consolidate small pension pots.

Speaking at the Personal Finance Society (PFS) conference this morning, Webb said the government will consult on several ways to help people moving jobs consolidate their savings.

"I will be consulting later this year on options to tackle this problem, ranging from simply making the existing voluntary transfer process more straightforward, to introducing an automatic transfer system where pension pots follow people from job to job," said Webb.

"With the average person working for 11 different employers over the span of their career, it is vital we make sure that we remove barriers and make it as easy as possible for people to grow big fat pension pots.

"Millions of people are set to be enrolled into workplace pensions beginning next year, and we estimate that at least 200,000 small pension pots will be created each year."

Webb has previously promised he will break down the legislative barriers that prevent workers transferring their savings into one large pot.

Currently, there are difficulties combining small pots, leading to problems at retirement as most providers will not sell annuities for below £5,000.