The lifetime provider model raised by the former government is no longer expected to pursued, industry experts have suggested, with a formal decision expected to follow the government's pension review.

The former government raised the idea of a ‘pot for life’ model, allowing savers to ask new employers to pay pension contributions into their existing pot, in its 2023 Autumn Statement.

However, speaking at the Pensions Age Autumn Conference, Capital Cranfield professional trustee, Andy Cheseldine, said: “Lifetime pots, the idea that came out of the Treasury about a year ago, are dead. The government will do no more work on this.”

This was not the only speculation around the policy over the past week, as, during a Pensions Policy Institute event, LCP partner, Steve Webb, said that the government is dropping lifetime provider proposals.

“The idea that the last government had of a lifetime provider, the great news is the government are dropping that,” he said.

“The new government has indicated that this is not happening, and that is tremendous news. There are so many flaws with that idea."

"It is great that it is not going to happen," he added, "but it does leave a void, because what is going to happen to all these fragmented pension pots?”

However, Webb suggested that “magnetic pensions” could be a solution to this, an idea that builds on the ‘pot follows member’ model.

This would mean pensions would be 'magnetically attached' to savers and will move with them to a new job where the pot would be combined with their new workplace pension.

However, he acknowledged that as the pension bill is not expected until next year, there will be “time” to make this case to the government.

Officially there has been no decision on the lifetime provider model yet.

A Department for Work and Pensions (DWP) spokesperson said: “Our landmark pensions review will help to ensure the pensioners of tomorrow have the dignity and security they deserve in retirement.

“We will look at further steps to improve outcomes for people saving into their pensions while increasing investment in the UK later this year.”

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