Martin Lewis has sounded the alarm over a staggering £65 billion in forgotten pensions across the UK, with the average lost account holding £19,600. In his latest newsletter, the Money Saving Expert (MSE) founder described the sum as 'jaw-dropping' and urged Brits to undertake the 'seriously profitable' task of reclaiming their cash.
Real-Life Success Stories
One couple who followed Lewis's advice discovered a lost workplace pension worth over £60,000, while another MSE follower was reunited with a whopping £137,000. A recent timed experiment found it takes only seven minutes of admin to kickstart the process, making it well worth the effort.
According to Lewis, pensions often go missing when people forget to update contact details with firms, or when companies merge, change names, or go bust. Over time, these funds can become dormant and may eventually be given to charity. However, even in such cases, the money can usually be reclaimed.
How to Track Down a Lost Pension
As of late 2024, the Pensions Policy Institute estimated 3.3 million lost pensions in the UK. To find out if one is yours, start by listing all your former employers. Ideally, keep relevant paperwork handy, but if not, contacting HR departments can provide guidance.
If that fails, use the Pension Tracing Service. This free tool holds details for over 200,000 pension schemes. Input your employer or provider to get up-to-date contact information, even if the company has changed names or been taken over. Access it via the official government website or call 0800 731 0175.
Alternatively, MSE recommends Gretel, a fintech firm launched in 2022. Gretel runs a 'soft search' on your credit report to find previous addresses and then hunts for associated missing pensions, with initial results in minutes. It continues searching every 14 days for new matches.
'Once you have details, contact the pension provider (you'll usually need to provide ID),' Lewis adds.
Should You Combine Your Pensions?
After locating your pots, consider whether to combine them. Charlene Young, senior pensions and savings expert at AJ Bell, highlights three benefits of consolidation:
- Potentially Lower Charges: Older pensions may have high annual fees. Moving to a plan with better value can reduce costs and boost your pot over time.
- Keep Track of Your Total: Combining pensions helps estimate retirement income, enabling better decisions about contributions.
- Avoid One-Size-Fits-All: Lost pensions may be in default funds that don't match your retirement goals. Consolidation allows tailored investment choices.
With nearly £20,000 potentially waiting, setting aside seven minutes could reunite you with your money.
