The Pensions Regulator has dropped a bombshell. Millions of Britons are saving for retirement without knowing it. A loophole in workplace pension auto-enrolment rules means employees who change jobs frequently might be contributing to multiple pension pots, each with a different provider.
The watchdog's report, published this morning, reveals that over 40% of workers who switched jobs in the past five years failed to consolidate their pensions. The result? An estimated £19 billion in unclaimed retirement savings.
One Whitehall insider told me: 'This is a Westminster own goal. We designed auto-enrolment to be sticky, but we forgot about job mobility.' The revelation has sparked panic in the Treasury.
Officials are now scrambling to propose a 'Pension Passport' scheme to track contributions across different employers. But critics warn this could create a new bureaucratic quagmire. The real scandal?
The regulator admits it has known about this for three years. Questions are being raised about why it took so long to go public. Labour's shadow pensions minister is demanding an urgent Commons statement.
The clock is ticking.
