Wealth at work has launched a new digital pension consolidation service, to help employers empower their workforce to better manage their retirement savings.
The new platform enables employees to consolidate their defined contribution (DC) pensions from previous employers into a single, flexible scheme. Accessible online, the service allows users to input details of old workplace pensions, view transfer timelines and track values, all in one place, streamlining what is often a complex and time-consuming process.
The launch comes in direct response to rising employer demand for practical tools that help employees reduce the risk of lost pension pots and manage their savings more effectively.
Research highlights the scale of the issue, with an estimated 3.3 million lost pensions, worth £31.1 billion, remaining unclaimed.
While auto-enrolment has successfully expanded pension participation, it has also resulted in employees accumulating multiple small pots as they move between jobs. There are currently around 13m pension pots worth £1,000 or less, and this figures is increasing by around 1m a year.
The new digital service aims to tackle this growing challenge by reducing administrative burden and improving visibility. By bringing multiple pots together, employees also benefit from reduced overall fees, thanks to a single clear and transparent charging structure, helping more of their money stay invested for the future. Consolidating pensions into one place also provides a clearer view of total retirement savings, potentially boosting engagement and helping individuals stay focused on long-term retirement income goals.
Employees using the service can choose from a range of investment options, including a target-date fund aligned to their anticipated retirement date, or they can build a diversified portfolio from a selection curated by Wealth at work’s in-house investment management team.
The platform also provides access to digital educational content to help employees understand investment principles, manage risk and make informed decisions.
The consolidation service is free for employers to implement and complements Wealth at work’s broader suite of financial wellbeing solutions, which include financial engagement, education, guidance and regulated investment advice.
Jonathan Watts-Lay, Director, Wealth at work, says: “Financial wellbeing is a key pillar of employee satisfaction, and addressing lost pensions is becoming increasingly important as demand for support in this area grows. For employers committed to helping their workforce manage retirement savings, our new digital Pension Consolidation service provides a simple, straightforward way for employees to bring their pots together. It complements our existing advised service for individuals with more complex needs. Together, these solutions support wider efforts to reduce pension fragmentation and improve retirement outcomes across the workforce.”
