New research has found that almost two-thirds of workers now have savings spread across multiple retirement accounts, with an estimated £31.1 billion sitting in millions of "lost" pensions across the UK.
Financial wellbeing specialist WEALTH at work said 62 per cent of workers with a defined contribution pension have more than one pension pot. The research, based on a survey of 2,000 UK workers, found that five per cent of employees are unsure how many pension pots they have, raising concerns that many people could lose track of retirement savings as they move between jobs.
Pensions dashboards on the way
According to the Pensions Policy Institute, there are around 3.3 million lost pension pots in the UK containing a combined £31.1 billion. The findings come as the pensions industry prepares for the introduction of pensions dashboards, which are expected to begin rolling out to the public from 2027. The new online service is designed to allow people to see all of their pension savings in one place. Pension providers are required to connect to the dashboards programme by October 2026 ahead of the public launch.
Consolidation and guidance
The WEALTH at work survey also found that more than a quarter (27%) of workers said they would be more likely to engage with their retirement savings if they could see all of their pensions in one place. Around one in four (24%) said they have already consolidated their pensions into a single pot, while almost a third (32%) are considering doing so.
Jonathan Watts-Lay, director at WEALTH at work, said: "It's now very common for people to build up multiple pension pots as they move between jobs, but this can make it difficult to keep track of what you've saved. Without a clear view of all your pensions, it's harder to understand whether you're on track for the retirement you want." He added: "Bringing pensions together through consolidation, and checking them regularly, can help you build a clearer picture of your overall savings and take action if needed. Many workplaces now offer financial education and help with pension consolidation."
Consider before consolidating
While bringing pension pots together may make them easier to manage, it is not always the right option for everyone. Some older pensions include valuable guarantees, lower charges or protected benefits that could be lost if they are transferred, so anyone considering consolidation should check the terms of their existing pensions or seek guidance before making a decision.
