Households are being urged to check if they have old pension pots after research revealed that more than three million workplace pensions are lost across the UK, collectively worth £31.1 billion. The Pensions Policy Institute estimates the average lost pot is valued at £9,470, meaning many people could be missing out on thousands of pounds without realising it.
Why pensions get lost
Joe Lytwyn, a personal finance expert at thimbl.com, said anyone who has changed jobs during their career should look for forgotten workplace pensions, especially if they have moved home or not updated contact details with providers. “Many people don't realise how easy it is to lose track of a pension,” he said. “If you've changed jobs several times over the years, there's a good chance you've built up more than one workplace pension, and it's surprisingly easy for one to slip through the cracks.”
According to the Pensions Policy Institute, the number of lost pots has increased significantly in recent years, driven by automatic enrolment and more frequent job changes. Moneysupermarket.com lists reasons including moving house without updating details, missing correspondence, forgetting former workplace pension providers, and provider mergers or rebrands. Pensions may also be unknown after a family member dies.
How to reclaim your pension
The government offers a free Pension Tracing Service to help people find contact details of workplace and personal pension providers they have lost touch with. Claimants need the name of their former employer or the pension provider. It is free to reclaim a pension as long as the pot is legally yours. Unclaimed pensions remain with providers and can be transferred to dormant accounts over time, but they can still be claimed.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “When people picture retirement, they often imagine travel, helping family and having the freedom to enjoy their hobbies. But for many, those plans risk remaining dreams rather than reality. The good news is most believe they'll be able to cover their bills. The challenge is making sure you have enough set aside to enjoy the lifestyle you want - and that includes checking you haven't lost track of an old pension.”
Lytwyn added: “People often spend time switching bank accounts, comparing insurance or hunting for savings on household bills, but checking for an old pension is something that's easily overlooked. The process is usually much simpler than people expect, and spending a few minutes searching today could help reunite you with retirement savings that belong to you.”
