Lost Pensions: How to Find and Trace Your Lost Pension Pots
The issue of lost pensions in the UK is becoming more severe as people change jobs more often. According to the latest figures from the Association of British Insurers (ABI) published in December 2023, the total value of lost pension pots in the UK has reached about £27 billion, spread across an estimated 2.9 million forgotten pots. This marks an increase from £26.6 billion in 2022.
Losing track of pension pots is a growing problem for millions across the UK. Frequent job moves and the challenge of managing multiple pensions make it easy to forget valuable retirement savings. Research shows that nearly 50% of pension holders have lost track of at least one pension pot, and this number is rising.
Why Do Pensions Get Lost?
Many people build up several pension plans during their careers, especially because the average UK worker now holds around 12 jobs in a lifetime. Each job and pension provider can mean a new pension pot. If you move house frequently or don’t update your details, records can become outdated, making it easy for pensions to be overlooked or lost.
The Scale of the Problem
Nearly half of all UK pension holders admit to having lost track of at least one pension pot. The total value of lost pensions is now estimated at £27 billion, with 2.9 million pots forgotten. The number of small pension pots, worth under £1,000, is expected to rise above 28 million by 2035. Additionally, 13% of people do not know how to track a pension from a previous job, and 16% are unsure about how to trace or combine lost pots.
Why It’s Important to Track Down Lost Pensions
Missing out on lost pensions can have a direct effect on your retirement, especially as day-to-day living costs rise. Unmanaged pensions can lead to unnecessary fees and lower investment growth, which can erode your overall retirement savings over time.
How to Find or Trace a Lost Pension
- Gather Your Employment and Pension Details
Collect as much information as possible about your previous employers and any pensions you have joined. - Use the Government’s Pension Tracing Service
The UK government offers a free Pension Tracing Service to help you find lost workplace or personal pensions. This service can provide contact details for pension providers but will not confirm the value of your pot. - Contact Former Employers and Pension Providers Directly
If a company has closed or changed its name, tracing services or Companies House records may help you find updated contact information. - Review Your Paperwork and Emails
Look through old payslips, pension statements, or emails from providers for useful details. - Seek Professional Advice
A financial adviser can help you trace and manage your pensions, ensuring your decisions are both tax-efficient and in your best interest.
Should You Consolidate Your Pension Pots?
Consolidating your pension pots can reduce fees and give you greater control. However, it’s not always the best option for every pot. Check if you could lose any valuable guarantees or benefits before deciding to combine your pensions.
Take Action Today
Keeping track of your pensions helps you make the most of your retirement savings and avoid unnecessary costs. Make it a habit to review and update your pension information, especially after each job change. For further help with tracing and managing your pensions, please get in touch.
