Should You Be Tracing Pensions That Are Lost?

NEARLY ￡20 BILLION OF PENSION MONEY GOES UNCLAIMED AND THIS FIGURE IS GROWING

The scale of the UK’s lost pensions mountain has been exposed by the largest study yet by the Pensions Policy Institute that found 800,000 pensions were lost and worth an estimated ￡9.7 billion. It estimates that, if scaled up to the whole market, there are collectively around ￡1.6 million pots worth ￡19.4 billion unclaimed – the equivalent of nearly ￡13,000 per pot. So, tracing pensions is definitely worth the effort.

In this article:

• Why Tracing Old Pensions Can Make A Difference In Retirement
• Number Of People With Multiple Pension Pots To Increase
• Tracing Pensions That Are Unclaimed – Both Personal and Work Place Pensions
• The Sooner You Trace Pensions That Are Lost, The Better

Why Tracing Pensions Can Make A Big Difference In Retirement

The figures in the studies are likely to be even higher as the research did not look into lost pensions held in the public sector, or with trust-based schemes typically run by employers. These findings highlight the scale of the lost pensions problem.

Tracing pensions that have been unclaimed can make a real difference to millions of savers who have simply lost touch with their pension providers.

Providers make considerable efforts and spend millions every year trying to reunite people with lost or forgotten pension pots. In 2017, more than 375,000 attempts were made to contact clients, leading to ￡1 billion in assets being reunited with them.

However, firms are unable to keep pace with a mobile workforce that moves jobs and homes more often than ever before. Prevention is better than cure, so be sure to keep all your pensions paperwork in one place. You should also tell your previous pension scheme administrator about any changes of address.

Number Of People With Multiple Pension Pots To Increase

Nearly two thirds of UK savers have more than one pension, and changing work patterns means that the number of people with multiple pension pots will increase. People typically lose track of their pension pots when changing jobs or moving home.

The average person will have around 11 different jobs over their lifetime, and move home eight times. The Government predicts that there could be as many as 50 million dormant and lost pensions by 2050. So, tracing old pensions will become vital to improving lives in retirement.

NEARLY TWO THIRDS OF UK SAVERS HAVE MORE THAN ONE PENSION, AND CHANGING WORK PATTERNS MEANS THAT THE NUMBER OF PEOPLE WITH MULTIPLE PENSION POTS WILL INCREASE.

Tracing Pensions That Are Unclaimed – Both Personal Or Workplace Pensions

If you have lost track of a pension, it’s important to write down the dates and contact details of the companies you had pensions with. If you have all the information, then you can contact the pension provider directly to find how much there is in your pension pot. Alternatively, you can contact the Pension Tracing Service.

They will help you find the addresses and details you need and can help you locate or trace any pensions that you may have lost or misplaced. You can also contact them to trace pensions that are unclaimed whether it’s a personal or workplace pension for deceased relatives.

It’s possible that their estate or a surviving partner or relative could be eligible to claim a percentage of the lost pensions.

THE PENSION TRACING SERVICE TELEPHONE NUMBER IS: 0800 731 0193 OR (FROM OUTSIDE THE UK: +44 (0)191 215 4491; TEXTPHONE: 0800 731 0176).