This week in pensions, the UK government confirmed it was pushing ahead with legislation to tackle the growing issue of small, forgotten pension pots, in a move expected to boost retirement outcomes for millions of workers.

The government announced that proposals to consolidate small pension pots would be included in the upcoming Pension Schemes Bill, with the Department for Work and Pensions (DWP) estimating that the reform could increase the average worker's retirement savings by around £1000.

The move has been widely welcomed across the industry, with stakeholders describing it as "long overdue" and essential to improving auto-enrolment in practice.

However, some industry leaders have warned that there could be a "long way to go" before savers see tangible benefits.

Elsewhere, in a timely reminder of the need for better pension literacy, Aviva revealed that while 53 per cent of Brits said they were confident in their pensions knowledge, most could not correctly identify different types of schemes.

Only 35 per cent of people could correctly define a defined benefit (DB) pension, and only 34 per cent understood what a defined contribution (DC) pension involved, suggesting a disconnect between perceived knowledge and actual understanding.

In addition to this, Hargreaves Lansdown highlighted that 40 per cent of over-60s had not completed an expression of wish (EOW) form to nominate a pension beneficiary, risking confusion over who should inherit their pension savings. This was despite a 26 per cent increase in updates to EOW forms between 2022 and 2024.

Meanwhile, environmental considerations continued to climb the pensions agenda, with DC scheme trustees being urged not to overlook the impact of climate risk on younger members.

HS Trustees warned that intergenerational concerns must be addressed, especially as under-40s increasingly express a desire for their pension investments to align with their environmental values.

Royal London Asset Management also confirmed this week that it would adopt the "Sustainability Focus" label for eight of its funds under the Financial Conduct Authority's (FCA) new Sustainability Disclosure Requirements (SDR) regime. The move affects £11bn in assets and reflects the growing demand for transparency and accountability in sustainable investing.

Adding to the momentum, a survey by the Society of Pension Professionals (SPP) found that 88 per cent of respondents believed sustainability would influence the selection of bulk annuity providers.

More than half (55 per cent) were aware of the Sustainability Principles Charter launched last year, though 45 per cent admitted they were not yet familiar with it.

In positive news for savers, expanding childcare support could help parents save more for retirement, according to a new analysis by The People's Pension. It found that changes to the Childcare Act could increase retirement savings by up to £1.2bn - and enable some parents to retire a year earlier than planned.

The original Act, introduced in 2010, offered 15 hours of funded care for three- and four-year-olds, but recent reforms have broadened access, making it easier for parents to work and contribute to pensions consistently.

Finally, optimism remains strong about the rollout of pensions dashboards, with 90 per cent of FCA-regulated providers saying they expect to connect to the ecosystem within the DWP staging timelines.

Research by Ipsos for the Pensions Dashboards Programme (PDP) found providers were largely confident in meeting connection deadlines, with a focus on data readiness and digital integration remaining a key priority.

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