Critics have attacked the Government's plans to make it easier for employees to transfer pensions from one employer to another when they change jobs.
In a letter published by the Daily Telegraph, the National Association of Pension Funds, the Trade Union Congress, Age UK and Which? say workers who switch jobs several times during their careers could lose up to a quarter of their potential pension funds under the Government's proposed reforms.
The pension and consumer groups have warned that, under the proposed plans, workers could lose out financially if they moved their growing pension pot to a new fund each time they changed jobs due to higher fees, and the risk of transferring into a poorly managed scheme.
"We agree with the Government that a system that automatically transfers these small pots is necessary," the letter stated.
"However, the Government's solution, where the pot follows an employee who moves job, is impractical and risks reducing individuals' retirement income.
"We urge the Government instead to consider alternative models for automatic pension transfers."
Compare pensions based on past performance
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.