Pensions UK publishes small pots feasibility review

Pensions UK has published the small pots digital systems feasibility review which was commissioned by the DWP to assess whether the Small Pots Data Platform can be delivered to support the Government’s multiple default consolidator model. 

The goal of the review was to determine the most practical, cost-effective, and scalable digital solution to consolidate millions of deferred small pots by 2030. It examines the operational and technical viability of the Government’s consolidation of small pots proposals, as outlined in the Pension Schemes Bill. 

The review found that a federated, industry-led model is a practical and cost-effective way to consolidate small pension pots by 2030 and it recommends implementing the “multiple consolidator model”. The need for strong governance and regulatory involvement is highlighted. The review also notes that a second phase of work will be necessary to focus on refining technical standards, consumer protections, and implementation timing, and details will be set out in secondary legislation.