Millions of people aged between 55 and 75 in the UK could be missing out on an average of £13,620 in lost pension pots, according to research published in 2024 by the Pensions Policy Institute (PPI). The study, sponsored by the Pension Attention campaign, found that there were approximately 3.3 million lost pension pots across the UK, with a combined value of £31.1 billion.
Lost Pension Pots on the Rise
The research revealed that the average lost pension pot across all age groups was valued at £9,470, but for those aged 55 to 75, the figure rose significantly to £13,620. The value of lost pension pots has increased by 60% since 2018, a trend attributed to people changing jobs more frequently and the expansion of automatic enrolment into workplace pensions.
Changing jobs can make it easy to lose track of older workplace schemes over time, leaving many workers unaware of thousands of pounds that could boost their retirement savings. The Pension Attention campaign, coordinated by the Association of British Insurers and the Pensions and Lifetime Savings Association, encourages Brits to check whether they have lost track of any old pension pots.
How to Trace Lost Pensions
The campaign urges individuals to use free pension tracing tools or retrace their employment history to locate lost pots. The UK Government's Pension Tracing Service is also available to help find previous workplace or personal pension schemes. National Pension Tracing Day, held annually, aims to raise awareness of the issue.
According to the PPI study, the rise in lost pots is linked to more frequent job changes and the growth of automatic enrolment. The campaign is funded by organisations across the pensions industry and highlights the importance of consolidating pension savings to ensure a comfortable retirement.
People who think they may have lost track of an old pension are encouraged to act promptly, especially those approaching retirement age, as reclaiming these funds can significantly enhance their financial security in later life.
