More than three million pension pots are estimated to be lost across the UK, with the average forgotten pot worth around £6,000, according to new research.
Figures from the Pensions Policy Institute (PPI), supported by the Government-backed Money and Pensions Service (MaPS), show that around 2.5 million of these lost pots belong to people under the age of 55. The average lost pension for this age group is worth £5,250.
Older savers and gender differences
However, the figure is much higher for those aged between 55 and 74, whose missing pots are worth an average of £10,710. There is also a difference between men and women, with lost pensions belonging to women worth around £5,370, compared with £6,830 for men.
A pension is considered lost when the provider can no longer contact the person who owns it. This can happen when someone changes jobs, moves house or forgets about a workplace pension they paid into years ago.
National Pensions Tracing Day
The findings come ahead of National Pensions Tracing Day on October 25, which encourages people to track down retirement savings they may have lost touch with.
Dr Suzy Morrissey, deputy director of the PPI, said: "As the PPI’s new figures show, lost pension pots remain a significant issue for savers, providers and policymakers."
Tom Selby, public policy director at AJ Bell, warned that changing jobs throughout someone's working life can make it easy to lose track of old workplace pensions. He said: "While the average pot value may not sound life-changing on its own, £6,000 can make a significant difference to someone’s retirement income."
How to trace a missing pension
People who think they may have a missing pension can use the Government's free Pension Tracing Service to find contact details for previous pension providers. They can also contact former employers or check old paperwork to see whether they were paying into a workplace scheme.
Mr Selby said combining pensions will not necessarily be the best option for everyone, as some older schemes come with valuable benefits that could be lost if transferred.
The Money and Pensions Service is also developing a MoneyHelper Pensions Dashboard, expected to launch in the 2027-28 financial year, which will help people see their pensions in one place.
