People who have changed jobs over the years are being encouraged to check whether they have forgotten workplace or personal pensions that could be worth thousands of pounds. The reminder follows National Pension Tracing Day on Sunday, October 25, which aims to help savers reconnect with retirement savings they may have lost track of.
Research highlights pension knowledge gap
New research from Aviva found more than half (54%) of pension holders have two or more pension pots, but only 36 per cent know the current value of their retirement savings. Almost one in 10 (8%) do not know how many pension pots they have.
The insurer also revealed its Find and Combine service has helped customers locate more than £1.1 billion in pension savings since launching in 2022. More than 115,000 applications have been processed, with the average pension found worth almost £14,000.
Free tracing service available
People can use the free UK Government Pension Tracing Service to find contact details for workplace and personal pension schemes they may have lost track of. The service does not confirm whether someone has a pension or how much it is worth, but it can help them identify the provider they need to contact.
Alistair McQueen, Head of Savings and Retirement at Aviva, said: "Over a lifetime, it's common to build up a number of workplace pensions, particularly as careers become more flexible and people move employers more often.
"Our Find and Combine service has now helped locate more than £1.1 billion in pension savings, showing that significant retirement wealth can be sitting in pensions people may have forgotten about or lost touch with.
"National Pension Tracing Day is a useful prompt for people to track down old pension pots, update your records and build a clearer picture of your retirement finances. Even relatively modest pots can be worth thousands of pounds and could play an important role in your future retirement income."
Uncertainty across age groups
Separate research from Moneybox found one in four people do not know how much they have saved in pensions. Its Financial Confidence Index, based on a survey of 4,020 respondents conducted by OnePoll, found uncertainty was highest among older age groups, with 32 per cent of people aged over 65 unaware of the value of their pension savings.
Camilla Esmund, Head of Investor Campaigns at interactive investor, said: "Most people move jobs around 11 times over the course of their careers, and each move can leave a pension behind.
"That could mean up to 11 separate pots to keep on top of, which isn't always easy, particularly if you've moved house or changed your name along the way."
She added: "A great step that can make you feel more in control of your financial future, but doesn't require any extra funding, is to round-up any lost or misplaced pensions, which you can do by either using the government's online tracing service or contacting your previous employer(s)."
Steps to find lost pensions
Brian Byrnes, Director of Personal Finance at Moneybox, has shared advice to help people track down old pension savings and review their retirement finances.
Start by identifying companies you have worked for and the approximate dates of employment. Old payslips, pension statements and employment documents may help establish whether you were enrolled in a workplace pension. If you cannot remember the pension provider, contact your former employer's HR or payroll department.
The online service at GOV.UK can help you find contact details for pension schemes linked to previous employers or personal pension arrangements. You can then contact the pension provider directly to check whether you have savings with them.
When contacting an old pension provider, it can help to have your National Insurance number, previous addresses, former names and employment dates available. These details may be needed to confirm your identity and locate older pension records.
Once you have located your pension pots, request up-to-date statements and review their current value, investment arrangements and any charges. This can help you build a clearer picture of your total retirement savings and identify whether your pension arrangements still meet your needs.
Some people may find it easier to manage retirement savings by transferring several pensions into one arrangement. However, consolidation is not suitable for everyone. Older pensions may include valuable guarantees, protected benefits or exit charges that could be lost through a transfer.
People with defined benefit pensions, including final salary schemes, should be particularly careful. Regulated financial advice is generally required before transferring safeguarded benefits worth more than £30,000. Free, impartial guidance about pension transfers and tracing lost pensions is available through MoneyHelper.
Keep track of retirement savings
Moneybox recommends reviewing pension arrangements regularly, particularly after changing jobs or experiencing a significant change in personal circumstances. Keeping contact details up to date with pension providers can also help prevent savings becoming difficult to trace in future.
Alistair McQueen added: "Whether you're starting a new job, reviewing your finances or simply taking stock, spending a few minutes checking where your pensions are and what they're worth can help you build a clearer picture of your retirement savings."
The Government Pension Tracing Service is available free of charge to people across Scotland, England and Wales at GOV.UK.
