As many as 88% of UK workplace pensions savers have at least one pot that remains unclaimed, according to Netwealth research.
Analysis by the wealth management organisation estimates that the average worth of the ‘lost pots’ is £28,000.
Workers changing jobs multiple times throughout their professional career means many amass multiple pension pots over a lifetime, and the responsibility to keep track of them falls upon the owner. The challenge this presents is reflected in the research, with 42% saying that between two and five of their various pots are now stranded.
According to Charlotte Ransom, CEO and founder of Netwealth, the current system means consumers are obstructed from having a “holistic view” across their wealth in aggregate, making it more difficult to plan ahead and identify funds needed for key milestones.
“The high number of stranded assets is clearly concerning,” said Ransom. “It is very common to have several pools of retirement assets during our lifetime, and it is often difficult to successfully and actively track all of them, especially if they are sitting with multiple providers over a long period of time.”
The research found that female respondents were particularly affected by the problem, with half (50%) of women who confirmed a pension pot remains unclaimed saying that they do not have sight of or access to up to five company pensions accrued throughout their careers.
Ransom urged workplace savers to act now to take control of all their pension assets.
“It is understandable that in the current climate of market volatility and the cost-of-living crisis, there is a growing fear among investors that their savings won’t go far enough in later life, especially with average lifetimes extending, requiring more substantial retirement savings,” she said.
“Now more than ever, it is vital that consumers track down any stranded pensions that they have worked hard to earn, and that they act to recover them sooner rather than later to regain control over these important pools of value,” Ransom added.