In the letter addressed to Stephen Timms, chair of the Work and Pensions Committee, Darren Philp, director of policy at Smart Pension says:
I have set out below a summary of what we have said in our response to the DWP on the specific issue of dealing with small pots. Small pots are bad news for the pensions industry, but, more importantly, they are bad news for the saver. Small, fragmented pots, get lost and do not provide a solid platform for engagement.
While pensions dashboards will help people keep connected with their pots, and perhaps proactively consolidate these in some cases, further intervention is needed to address the issue and stop the problem growing. We would urge the DWP to consider implementing solutions to the small pot problem as a matter of priority.
Launched in 2015, Smart Pension exceeds £4bn in assets under management (AUM) and now serves over one million members and more than 70,000 employers. It is powered by Keystone, Smart’s global savings and investments technology platform.
Aquiline Capital Partners, Barclays, Chrysalis Investments, DWS Group, Fidelity International Strategic Ventures, J.P. Morgan, Legal & General Investment Management, Link Group and Natixis Investment Managers are all investors in Smart Pension.