With people changing jobs more often and the ongoing success of auto-enrolment, the value of lost pension pots in the UK has risen by 60 percent since 2018, representing an increase of nearly £12 billion, research has revealed.
Data from the Pensions Policy Institute shows that there is now £31 billion sitting in unclaimed pensions, with around 3.3 million pots now considered ‘lost’, with an average fund of £9,470, rising to £13,620 for people aged 55 to 75.
Unclaimed, inactive, or lost pension pots mean that UK savers risk missing out on large sums of money, according to the Pension Attention campaign.
Pension tracing tools
Employers have been encouraged to highlight the free pension tracing tools available via the Pension Attention campaign website to their staff, ahead of National Pension Tracing Day on Sunday 27 October, 2024.
Chris Blackwood, spokesperson for the Pension Attention campaign, said: “If you can do one thing today, visit pensionattention.co.uk and use the pension tracing tools to find any lost pension pots. It only takes a few clicks, and you could substantially add to your pot. Additionally, you could also retrace your career steps, check old papers, look for any gaps in your pension history, and contact your provider to update your contact details.”
Gavin Zaprzala-Banks, managing director – Employee Benefits Consulting at Second Sight, said: “The fourth National Pension Tracing Day aims to urge the nation to think about their pensions, and consider any lost pots that they might have that need to be retraced. We’re calling on all adults to take advantage of the extra hour this weekend, when the clocks go back, to start their search and use the free pension tracing tools available.”
Vivan Shridharani, co-founder and CCO of pension finding platform Raindrop, said: “The millions of UK savers who have lost track of their pensions need support from financial providers if they’re to locate these lost pots and better prepare for their financial future.
“The current pension tracing process is incredibly onerous and overly complicated so people are often unsure how to begin their search to locate lost pensions – savers desperately need a simple pension finding solution that finds lost pots and supports with consolidation otherwise they are at risk of losing track of their retirement savings and impacting their future financial security.
“Since launch, Raindrop has located over £350m in lost pension savings across more than 32,000 pots.”
