A fifth of people (19%) with multiple pensions think they’ve lost track of at least one of their pension pots according to new research from Standard Life, part of Phoenix Group1. The stark findings come as Standard Life launches a free to all pension finding tool powered by pension-finding platform Raindrop to help Britons track down their missing pensions.
Despite the potential benefits of bringing your pensions together (consolidating) - ranging from less admin and filing, a greater ability to track performance and boost understanding of how much is being saved for the future, to possible lower charges - three quarters (73%) of those with more than one workplace pension say they have not consolidated. Worryingly, 32% are unsure of how to start consolidating, and 12% find the process too difficult.
It’s estimated that 2.8 million pension pots in the UK, valued at over £26.6bn, remain unclaimed, a figure many billions greater than the blackhole currently facing the UK’s public finances. With the average person having at least 11 employers in their working lifetime, the process of tracking pensions down and managing them simultaneously is proving a challenge for many.
Recognising the problem, Standard Life, part of Phoenix Group and the UK’s largest long-term saving company, has partnered with Raindrop, a fintech offering innovative pension finding technology, to help tackle the problem for pension savers throughout the UK.
Standard Life has simplified that process and once registered, in two simple steps, the pension finding process begins. By providing an employer’s name and time period employed rather than details of the pension provider in each previous role, as is often the case when consolidating pension pots, Raindrop’s technology does all the heavy lifting, with the tracing process on average taking just 4-6 weeks. During this time a dedicated case manager is on-hand to provide updates on the process. Once a person’s lost pensions have been traced they will be better informed about their income prospects and able to take the necessary steps to better prepare for their retirement.
Since the launch of its pension-finding platform, Raindrop has located over £325m in lost pension savings across more than 27,000 pots.
Launching the service, Dean Butler, Managing Director of Retail Direct at Standard Life said: “We know that people who actively plan for their retirement are more confident and financially secure2 but if you don’t know where all your savings are, you can’t begin to calculate their value, making planning unnecessarily difficult. Sometimes people have a vague idea of having a pension with a previous employer but then just don’t know how to go about finding it. Our new pension finding service removes the major hurdles that people face and allows them to regain control of their pensions savings. We want to help them trace any missing pensions, so they don’t ever lose them again and are better prepared to organise their retirement savings.”
Vivan Shridharani, Co-Founder & CCO at Raindrop, said: “Millions of UK savers have lost pensions, often unsure of how to begin their search. As each new generation has more jobs than the last, the number of lost pensions continues to grow. We’re committed to helping savers, with a simple solution to easily find their lost pensions and help them better prepare for their financial future.
“By partnering with Standard Life, one of the UK’s largest pensions providers, we hope to empower savers to locate lost pots and take control of their long-term financial planning.”
The common reasons for losing a pension include:
• Starting a new job and changing employer
• Moving address and not updating a pension provider
• Unsure of the company name following merger, acquisition or brand name change
• No knowledge of who provided their workplace pension
• Vague idea of having a pension with a previous employer but no idea how to initiate the tracing process
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