• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Pensions

Pensions and investments could be tapped for £800m in UK's dormant assets

Pensions and investments could be tapped for £800m in UK's dormant assets
  • Christopher Copper-Ind
  • @intlinvestment
  • 11 January 2021
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Up to £800m in pensions and investments assets could be unlocked following a major expansion of the UK's ‘Dormant Assets Scheme', the government announced this morning.

Assets held via vehicles including savings endowments, investment bonds and income drawdown will be made available for a range of UK projects through the scheme. According to governement data, over £745m has already been distributed to a variety of causes using dormant assets held in banks and building societies.

Related articles

  • UK sitting on £20bn of unclaimed pension pots
  • FCA called upon to do more to protect DB and DC members from scams
  • Comment: Is time running out for tax-free EU pension transfers?
  • Adviser access to £350bn Govt coronavirus 'war chest' in doubt

A crucial change for policyholders is that they will always be able to claim their money back - no matter how long a fund or asset has been deemed dormant.

This is money that could make a meaningful difference to the lives of thousands of people struggling through the pandemic."

Tom Selby, senior analyst at AJ Bell, commented: "An estimated 1.6 million retirement pots representing £19.4 billion of assets could be classified as ‘lost' in the UK. While the industry's priority must remain reuniting these pots with their owners, there are various circumstances where this simply won't be possible and the assets become dormant."

"Where this is the case - and particularly given the strains placed on millions of people by Coronavirus - it makes sense to put that cash to good use."

"The Dormant Assets Scheme has successfully marshalled £745m in funds previously gathering dust with banks and building societies to pay for a variety of projects since its launch in 2011. This includes £150m which was unlocked to support the charity and voluntary sectors in May last year as part of the UK's Coronavirus response."

"By using dormant pensions and investments in a similar way, the Dormant Assets Scheme's financial war chest could be boosted to the tune of £800m. This is money that could make a meaningful difference to the lives of thousands of people struggling through the pandemic."

"It is important to make clear that this is not a pensions raid of any sort. Those who hold a policy which is used as part of the Dormant Assets Scheme will always be able to claim their funds back, no matter how long it has been deemed dormant."

Subscribe to International Investment's free daily newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Pensions
  • AJ Bell
  • UK pensions

More on Pensions

Digital switch must accelerate to meet demand: iPensions Group

  • Fintech
  • 15 January 2021
FCA identifies 30,000 instances of unregulated activity in 2020

  • Pensions
  • 06 January 2021
Tavistock to use Canada Life's Retirement Account as core pension solution

  • Pensions
  • 08 December 2020
Around 240,000 pension savers may have lost more than £14bn to fraud

  • Pensions
  • 04 December 2020
Latin American private pensions fuel cross-border demand: report

  • Pensions
  • 01 December 2020
Back to Top

Most read

FCA issues warning on cyrptocurrencies as Bitcoin volatility continues
FCA issues warning on cyrptocurrencies as Bitcoin volatility continues
DeVere launches equity fund with Columbia Threadneedle Investments
DeVere launches equity fund with Columbia Threadneedle Investments
Guardian WM is reborn as Skybound WM
Guardian WM is reborn as Skybound WM
HNWIs in SE Asia cite lack of financial knowledge as greatest concern: report
HNWIs in SE Asia cite lack of financial knowledge as greatest concern: report
People moves: IQ-EQ, AllianceBernstein, Beaufort Group, BCS Global Markets, Tyndall IM, TMF Group
People moves: IQ-EQ, AllianceBernstein, Beaufort Group, BCS Global Markets, Tyndall IM, TMF Group
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading