Buzz: Govt criticised for accelerating abolition of member refunds

clock • 1 min read

The majority of contributors believe the government was wrong to bring forward the end of short service refunds. The move means refunds will be banned before measures to consolidate small pots are expected to be in place.

"Both of them should have been done together," said one commentator. "This is just another example of the inability of any government to do joined-up writing!"

p17-chart-2

 

Leaping at the chance to bash a bureaucrat, another contributor said: "As always, it is civil servants not understanding how things work. They are not pensions people and always get it wrong."

Some contributors went beyond criticising the timeframe for banning refunds, and questioned the whole concept.

"It seems like a knee-jerk reaction to bolster pot consolidation," was one respondent's verdict. "It assumes that all short service members will remain in employment in the UK. This is not the case in, for example, higher education where many short service members are not British nationals and will be returning to their native countries, so there is no onward pot to consolidate with."

But the measure was supported by almost three out of ten contributors.

"The government should have acted the first time it suggested that this would happen," said one respondent. "Short service refunds undermine the whole concept of auto-enrolment."

Another supporter said: "It's a move that actually fits in with their policy of encouraging saving for retirement, as opposed to most of their other bright ideas which actually discourage saving!"

More on Industry

Confidence in 'comfortable retirement' rising, Aegon says

Confidence in 'comfortable retirement' rising, Aegon says

One third feel ‘very or extremely confident’, highest among younger workers and men

Jasmine Urquhart
clock 04 September 2025 • 3 min read
DC Conference Manchester: Two weeks to go!

DC Conference Manchester: Two weeks to go!

The event will be held at Manchester Hall on Wednesday 17 September

Professional Pensions
clock 04 September 2025 • 1 min read
News Digest: BoE governor says turmoil could affect pace of bond sales

News Digest: BoE governor says turmoil could affect pace of bond sales

PP brings together all the latest news on pensions from across the national and financial media

Professional Pensions
clock 04 September 2025 • 1 min read
Trustpilot