Around 2.5 million lost pension pots in the UK are held by people aged under 55, with an average value of £6,000, according to research by the Pensions Policy Institute (PPI). The research, supported by the Government-backed Money and Pensions Service (MaPS), estimates that over three million pension pots in total are lost.
Average values by age and gender
The average lost pot for people aged 55 to 74 is £10,710, while those aged under 55 have pots worth £5,250 on average, marking a stark gap between the age brackets. Lost pension pots belonging to women are estimated to average around £5,370, compared to £6,830 for men, the research stated.
A lost pension is defined as one where the provider is unable to contact the owner of the pot. To conduct the research, those with pension providers were approached for information which was used to compile the findings.
Experts highlight the scale of the issue
Dr Suzy Morrissey, deputy director of the Pensions Policy Institute, said: “As the PPI’s new figures show, lost pension pots remain a significant issue for savers, providers and policymakers.”
Oliver Morley, chief executive of the Money and Pensions Service, noted: “With around 2.5 million lost pensions belonging to people aged under 55, there is a need to ensure no one is missing savings for the retirement they want.”
He added that the MoneyHelper Pensions Dashboard being developed by MaPS, expected to launch in financial year 2027-28, will help tackle this problem by showing pensions that people may have lost touch with.
Advice on tracking down forgotten pots
Tom Selby, public policy director at AJ Bell, said: “Automatic enrolment has been one of the great public policy successes of recent decades, ensuring millions of employees are building at least some level of pension savings for retirement.”
He noted that customers using AJ Bell’s own pension-finding tool have tracked down accounts worth an average of £18,500, with some using the service to find and combine pots worth over £1 million. “Combining pensions isn’t necessarily the right move for everyone and savers should take the time to shop around for the right provider, taking into account factors such as charges, choice, flexibility and service,” Mr Selby said.
He recommended services such as the Pension Tracing Service and pension finding tools, adding: “Whether you ultimately decide to combine pensions or not, the first step is to get a handle on what you’ve got and where it is invested.”
