Pension pots will automatically be transferred every time workers change jobs, the government has announced.The Department of Work and Pensions (DWP) has confirmed that it will roll out the 'pot follows member' policy to defined contribution (DC) schemes in the private sector and potentially public sector pensions if they also become DC rather than final salary.Under the current rulings, pensions can be transferred but employees must take an active role in the process - resulting in many small pots left with a string of employers.Research commissioned for the DWP shows that one in six people are unaware where their pension is saved and estimates that 50 million pension pots will become dormant by 2050.Pensions minister Steve Webb said: "At the moment, every time someone moves to a new job there is a risk that they leave behind a small pension pot which they lose track of."Our plans will mean that individuals get better value for their savings and bigger pensions as a result."
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Tax allowances and state benefits