A plan for a single pension pot is at the early stages with government talking to major pension providers about how this could work. At the moment millions of people have multiple small pot pensions, with an estimated £26.6bn in lost pensions, according to the Pensions Policy Institute.

Gareth Henty, pensions partner at PwC said: ‘Giving pension savers the ability to nominate a “pot for life” will eradicate the problem of individuals building up multiple small inefficient pension accounts over the duration of their working life.

‘Employees will be given a legal right to require a new employer to pay contributions into their existing pension making it easier to keep track of how their pension is growing.’