Wealth at work has launched a new pension consolidation service for employees.
The platform allows workers to consolidate previous DC pensions into a single flexible scheme, offering a range of investment options.
The platform aims to simplify the process by enabling employees to input details of old pensions into the platform, view transfer timelines and assess values. This can all be viewed in one place.
Employees can choose from a range of investment options, including a target-date fund based on anticipated retirement date, or they can build a diversified portfolio by selecting from a curated range of funds selected by the in-house investment management team.
This new service is free for employers to implement and complements Weallth at work’s suite of workplace offerings aimed at improving employee financial wellbeing, including financial engagement, education, guidance and investment advice.
Wealth at work says this launch responds directly to employer demand for support that empowers employees to manage retirement savings more effectively and track down lost pension pots.
This is a growing issue. Whilst auto-enrolment has successfully increased pension participation, it has also led to employees accumulating multiple small pension pots as they move between jobs. It is estimated there are now 13m pension pots worth £1,000 or less, with the number increasing by around one million a year.
This is making managing retirement savings more complex and time-consuming for employees.
Wealth at work says this may also help lower fees and lead to more transparent fee structure. It adds that seeing the total combined value of a consolidate pension can potentially lead to improved engagement.
Wealth at work director Jonathan Watts-Lay says: “Financial wellbeing is a key pillar of employee satisfaction, and addressing lost pensions is becoming increasingly important with a growing demand for support in this area.
“For employers committed to supporting their workforce in managing retirement savings, our new digital Pension Consolidation service offers a simple, straight-forward approach for employees to bring their pots together.
“This complements our existing advised service, designed for individuals with more complex financial needs. Together, these offerings support broader efforts to reduce pension fragmentation and enhance retirement outcomes across the workforce.”
