UK Workers Want Their Pensions to Stick With Them – Even Through Job Hops
In a recent poll by the Social Market Foundation (SMF) – a neutral think‑tank backed by fintech firm Cushon – the majority of UK workers say they’d love a pension “pot for life.” Think of it as a savings account that follows you around, no matter how many kitchen table meetings you play hop‑scotch between. The results came out just as the government is chewing over a “lifetime provider” model to tame the chaos of tiny pots that pop up every time you change jobs.
Who’s on Board?
- Hexi‑doors (25‑34) love it – 78% say yes.
- Next in line: 35‑44 year olds – 73% in favour.
- Middle‑aged movers (45‑54) are also in – 69% cheer.
Across the board, 72% of people with a Defined Contribution (DC) plan back the idea. Those with more education and who already look at their pensions roll in a touch higher, but overall the sentiment is in the green across demographics.
Why Give Employees the Power?
In the current system, you aren’t invited to the party. Your pension pot stays where the company left it, and unless you’re a T‑shirt‑coded activist, you’re pretty much just a back‑bench spectator. The SMF argues giving workers control can break the “pension pot fragmentation” problem – the spread of pocket‑sized pots that get lost in office switches.
Trade‑Offs That Don’t Flip The Switch
And yet, most of the surveyed folks are not scared of losing all that “employer‑hand‑written” guidance – just 25% would worry about that. However, a fresh look at the data reveals a twist: just 28% of those who said they supported member choice would actually flip the switch and pick a different provider. The rest are happy with the “hands‑off” approach: 67% love the HR boss doing the juggling, and 48% are satisfied with their hands‑free pension.
The Hurdles
The industry is holding up its hand in protest. Concerns about market competition, engagement drop‑downs, and extra fees are buzzing around the table. The SMF agrees that these obstacles exist but can be tamed with a “pot for life” – plus it gives people the gusto of steering the ship of what might be their biggest financial treasure.
What Needs to Happen for Engagement?
- There’s a reassurance gap: employees and employers need to know that a lifetime provider won’t rob them of any safety nets.
- Governments must keep the regulatory guard up: the same strict rules that guard automatic enrolment accounts should clench around the lifetime pot.
- Finally, folks must realize that a new policy is not magic. People will still be passive unless the government and pension firms step up.
Human Voices
Niamh O Regan from SMF said, “We nailed automatic enrolment by letting inertia do the heavy lifting. But today, people jump jobs faster than a kangaroo on an espresso kick. This brings the problem of split savings and tiny pots. A pot for life stops creating new pots at every job change – it lets the savings grow in one place and gives people the power over their biggest asset.”
Steve Watson of Cushon added, “Inertia is the heart of auto‑enrolment’s success, but it’s also the Achilles \”heel\”. Millions are saving, yet not enough, and many lose track of their pockets when changing jobs. A pot for life keeps all the wealth in one spot and sparks engagement. Owning a single pot makes people keep it in mind and helps them actively manage and grow their pension.”
Bottom Line
People are ready for a pension that sticks with them, but that alone won’t ignite fireworks of engagement. A “pot for life” can spark the interest, yet the on‑goers will still need a lil’ nudge – clear regulations, job‑level reassurance, and a pipeline of support to make sure the future of pensions isn’t just a passive pile of cash but an active roadmap for retirement greatness.
