Financial expert Martin Lewis has issued a pressing warning to Britons, revealing that millions could be owed significant sums from 'lost' pensions. According to Lewis, over £30 billion in pension funds is believed to be untraced, with the average lost pension amounting to nearly £10,000 per individual.
Why pensions become lost
Pensions can become untraceable for several reasons. Common causes include individuals failing to inform their employers of a change in address or contact details, or when they switch jobs without consolidating their pension pots. Over a lifetime of employment, multiple small pensions can accumulate and be forgotten.
How to check for lost pensions
Lewis advises people to start by reviewing any old paperwork, such as pension statements or correspondence from former employers. The next step is to contact previous employers directly to inquire about any pension schemes they may have contributed to. However, the most straightforward method is to use the official Pension Tracing Service, available on the gov.uk website. This free service allows users to search for lost pension schemes using their National Insurance number and former employer details.
Lewis emphasises that this process is completely free and warns against using paid services that claim to trace pensions, as the government tool provides the same information at no cost. He urges everyone, especially those nearing retirement, to take action promptly to ensure they receive the funds they are entitled to.
