HR and reward professionals are being encouraged to support employees in tracking down “lost” pensions worth a collective £31.1 billion, as National Pension Tracing Day (NPTD) marks its fifth year this month.
The campaign, launched in 2020, urges people to use the extra hour gained when the clocks go back on the last Sunday in October to focus on their pensions.
Data from the Pensions Policy Institute (PPI) shows there are an estimated 3.3 million lost pots, each worth an average of £9,470, which rises to £13,620 for people aged 55 to 74.
Employee benefits consultancy Secondsight, which leads the initiative, is calling on HR teams to use the free NPTD toolkit to help employees reconnect with their savings.
Darren Laverty, partner at Secondsight, 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.”
He added that modern working patterns make lost pensions increasingly common.
“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.”
Laverty also noted that anyone who finds a forgotten pot could benefit either by transferring it into an active plan or leaving it in place, now that they know where it is.
The non-profit initiative, supported by major providers including Aegon, Aviva, Legal & General Investment Management, Hargreaves Lansdown, Royal London, Scottish Widows, Smart Pension, Standard Life, The People’s Pension and the Pay Your Pension Some Attention campaign, aims to make it simple for savers to reconnect with money they may have overlooked.
