Pensions Policy Institute

Core research themes Key facts Our research is centred around three key themes: Affordability Sustainability Adequacy The number of deferred pension pots in the UK Defined Contribution (DC) master trust market is likely to rise from 8m in 2020 to 27m in 2035. Member charges generally erode small, deferred member pots over time and small pots can also be financially unsustainable for providers to manage. Altering charging structures is unlikely to solve the problems associated with small, deferred member pots, as charges either erode member pots or prevent schemes from breaking even on pot management. Any costs providers are unable to recover through the current system will need to eventually be passed on to members through higher charges. If DC pension pots are to remain financially sustainable for both members and providers, a more strategic policy based approach, exploring options for pot consolidation, is required. Our work explored the potential outcomes on the number of deferred pension pots, charges for members and costs for providers of a range of policy options. Case study: Policy options for tackling the growing number of deferred members with small pots The sponsor wanted PPI's independent analysis to shine a neutral light onto this area and lift it up the public policy agenda, which was achieved when DWP subsequently set up a Small Pots Working Group. Over 75% of our members have supported us for over 5 years We've issued 134 research reports Over 40 businesses are actively supporting us through membership We've issued 125 briefing notes