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Further details emerged this week of the government’s new system to help workers keep track of small pension pots built up throughout their working lives.

The so-called “pot follows member” system will allow workers with multiple small pension pots accumulated in different jobs to consolidate them within their current employer’s pension scheme.

The government said the reform was essential, with automatic enrolment expected to bring 10m-11m people into pension saving in coming years.

“Auto enrolment is helping people to save for retirement, but we must help them to keep their pots together so they know clearly that their pension is growing for their future,” said Steve Webb, pensions minister.

“With the average person now having 11 jobs in their career, this further reform is essential.”

However, the automatic transfer system will not come into force until autumn next year and will only apply to pension contributions made from July 2012 onwards.

Only small pension pots of £10,000 or less, which are invested in a charge-capped default pension fund, will be automatically transferred.

Savers will be contacted to confirm whether they want their pots to be moved to their new scheme — with an initial “opt-in” system introduced first, ahead of a full opt-out model.

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