More than half of respondents to a Professional Pensions survey would like to see the government launch a small pots taskforce to stop them undermining the success of auto-enrolment (AE).
A total of 53% of trustees, pension scheme administrators, investment consultants, and actuaries responding to PP's Pensions Buzz last week agreed a specialised taskforce was needed ahead of expected mass consolidation into master trusts.
This comes after Now Pensions-supported research from the Pensions Policy Institute last month found up to 27 million smaller pots could be moved into master trusts by 2035. The findings said the success of AE is then likely to be damaged, however, without government intervention to ensure the sustainability of the market in the long-term.
One Buzz pundit said the introduction of a small pots taskforce would likely be "a major piece of work across the pensions industry" with "a lot of careful thought needed" to get its set-up right the first time.
Another respondent called small pot consolidation an "expected consequence" of AE and an issue that needs resolving, while a third said those with the smallest pots should be strongly looked after by those "with benign intentions" in order to "preserve the credibility of the industry and the concept of AE".
A total of 35% of respondents to PP said a small pots taskforce was not needed, with one respondent saying administrators were sufficient enough to monitor any arising issues.
Now Pensions has called for a "high-profile taskforce" by the end of the year to deliver a proposed solution by the end of 2021.
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