The DWP raised the issue of small pension pots for the first time ten years ago. And although the administration put it on hold after the 2015 election, it is again firmly back on the table.
The issue of pension transfers still exists. As of right now, we haven't really answered the issue of whether moving a pension would be more expensive than keeping it administered. This transfer difficulty is currently being discussed by a number of working groups, including initiatives led by ABI, PASA, and some of the master trusts.
In this article, Ben Cocks, explains the challenge with small pension pots and proposed solution.