HR and reward teams are being called on to help employees locate forgotten pension pots, which total £31.1bn, as National Pension Tracing Day hits five years.
The initiative, led by Secondsight, is calling on employers to help staff track down overlooked pensions ahead of the last Sunday in October, when National Pension Tracing Day takes place. The average lost pot is £9,470, rising to £13,620 for those aged 55 to 74.
The initiative also encourages people to use the extra hour gained when the clocks go back to review their pensions. Secondsight recommends employers make use of the free toolkit available on the NPTD website to assist employees in finding what could amount to thousands of pounds.
According to the PPI, there are around 3.3 million lost pension pots which highlights the scale of the opportunity for workers to recover assets they may have forgotten.
The initiative is supported by major providers including Aegon, Aviva, Legal & General, Hargreaves Lansdown, Royal London, Scottish Widows, Smart Pension, Standard Life, The People’s Pension and the Pay Your Pension Some Attention campaign.
Secondsight workplace financial wellbeing strategist Darren Laverty said: “When the clocks go back, move your pension knowledge forward. Imagine giving your people a fantastic surprise by helping them find thousands of pounds they didn’t know about.
“National Pension Tracing Day gives people the perfect reminder to use an hour gained to start reconnecting with money they’ve already saved, but have forgotten about or overlooked.
“With people having, on average, seven different jobs throughout their working life, and often moving house multiple times whilst doing so, it’s no surprise pension pots go missing.
“By encouraging their people to take part, employers can make a meaningful difference to the long-term wellbeing of their workforce.”
He added that anyone who finds a lost pension can either transfer it or leave it in place, now that they know where it is. Launched in 2020, the campaign reminds people to reconnect with overlooked savings.
Fidelity International personal finance specialist Marianna Hunt says: “With an estimated 3.3 million lost pension pots worth over £31 billion*, Pension Tracing Day is a timely reminder to review your retirement savings – especially if you’ve worked for multiple firms over the years.
“There can be all sorts of reasons why you might have lost track of a pension. When you leave an employer, you also leave the pension scheme you were paying into, and it’s easy to forget about it once the payslips and company emails stop arriving. If you’ve changed address, changed your name, or your old company has restructured, the link between you and your pension can easily be broken. Yet those savings are still yours, and they can make a meaningful difference to your retirement income.
“Auto-enrolment means many people may have built up several small pensions without realising it, sometimes worth thousands of pounds. The government’s Pension Tracing Service is a great place to start – it can help you find the details of old schemes and reconnect with your savings.
“Wherever you are in your retirement planning, having a good idea of what you have saved is essential. Bringing pension pots together in one place, such as a self-invested personal pension (SIPP), makes it far easier to see how much you have and then manage with minimal admin and fuss.
“Once you’ve tracked down your pensions, review them carefully. Understanding how your money is invested, what fees you’re paying and whether your savings are on track can give you confidence in your long-term plans. However, it’s always important to check for any exit fees or valuable benefits before transferring, as in some cases it may make sense to leave older schemes where they are.”
