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.
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.
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.
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).
It’s not always easy to keep track of pension pots, especially if you’ve been in more than one scheme or have changed employer several times throughout your career. But it’s important that you do claim your pension, so the sooner you tracing pensions that are lost, the better.
Pension tracing by national insurance number is a good way to track down lost pensions.
IF YOU WOULD LIKE TO DISCUSS ANY CONCERNS YOU MAY HAVE, OR NEED HELP TRACING YOUR OLD PENSIONS THEN PLEASE CONTACT US.
THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.
PENSIONS ARE NOT NORMALLY ACCESSIBLE UNTIL AGE 55. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. THE TAX IMPLICATIONS OF PENSION WITHDRAWALS WILL BE BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION AND REGULATION, WHICH ARE SUBJECT TO CHANGE IN THE FUTURE.