An estimated 3.3 million pension pots across the UK have gone unclaimed, with the average missing pot valued at £9,470, according to the Pensions Policy Institute (PPI).
Why Pensions Go Missing
Anyone who has worked for several employers over the years could be affected, as workers are automatically enrolled into workplace pension schemes each time they start a new eligible job. Even pensions built up over a relatively short period can continue growing through investment, meaning forgotten savings may now be worth significantly more than expected.
How to Trace a Lost Pension
The simplest way to check is by using the Pension Tracing Service, which helps people reconnect with old workplace pensions they may have forgotten about. Scottish Widows has now made the service available through its app, allowing customers to search for missing pensions without leaving the platform.
To begin a search, users need to enter details including the name of a previous employer and the dates they worked there. If they know who managed the pension, they can include those details too before submitting their request.
Expert Comment
Chira Barua, chief executive at Scottish Widows, said: "Too many people are going into later life without a clear picture of what they have saved, simply because their pensions are scattered across different jobs and providers. With millions of pots sitting unclaimed across the UK, helping people reconnect with their savings is an important first step in improving retirement outcomes."
What to Do After Finding a Pension
People who discover more than one pension may decide to combine them into a single plan, which can reduce charges. However, experts warn savers should always check they are not giving up valuable benefits before transferring any money, particularly if they have a defined benefit pension that guarantees an income in retirement.
If you're unsure what to do after tracing an old pension, free guidance is available through the Government-backed Pension Wise service for those aged 50 and over.
The need to track down old pensions has grown since automatic enrolment became the norm. Workers contribute 4% of qualifying earnings into their pension, employers add 3%, while the Government provides a further 1% through tax relief.
