Plans unveiled to keep money in pension schemes

New plans have been published by the Department for Work and Pensions, aiming to ensure that money invested in pension schemes remains protected.

The proposals, launched by pensions minister Steve Webb, will provide protection to pension pots of people who move jobs frequently by removing the Short Service Refunds for defined contribution workplace schemes.

These refunds currently allow individuals to recover their pension contributions, but leave them without a pension.

Mr Webb said: "I want to ensure that as people more jobs, their money stays in pensions. Taking the money out goes against the overall goal of getting millions more people saving."

The minister also committed to efforts to ensure that people do not lose small pension pots, with a paper being published looking at issues surrounding the current system that make it harder for people to take their pots with them as they move in their careers.

According to the paper, the average person works for 11 different employers over the course of their career, making it key that there are no barriers to transferring pension pots.

 ADNFCR-2318-ID-801240841-ADNFCR