As Pensions Awareness Week takes place in the UK, new research by Canada Life reveals that one in six (16%) UK adults have tried to trace a pension that has been lost or forgotten, with one in 10 (9%) having done so successfully.
Among those who have managed to find a lost pension, the average total was £6,351. Respondents were most likely to find a pension(s) worth between £1,000-£5,000 (24%), however nearly one in 10 (8%) traced pension(s) worth over £20,000.
Despite the cost-of-living crisis leaving a number of UK adults facing financial hardships, the research found that, worryingly, one in 10 (8%) know they have a missing pension but they have not tried to trace it.
Andrew Tully, Technical Director at Canada Life, comments: “The lost pensions challenge in the UK has grown significantly in recent years, further exacerbated by the pandemic which resulted in a large proportion of people moving jobs. It remains a cause for concern for many, however our latest research highlights the importance of starting the search journey sooner rather than later. With successful respondents tracing over £6,000, on average, this amount can help boost people’s retirement pots, and can reduce reliance on the state pension and other benefits. After all, it’s your pension and there is no time limit to tracking down your money, so what have you got to lose?”
A recent Pension Policy Institute research briefing calculated the total value of lost pension pots has grown to £26.6 billion in 2022.
Top tips for finding a lost pension:
1. With the launch of auto-enrolment in 2012, around 10m million people have begun to save for their futures through employer sponsored pensions. A new job means a new pension scheme. Remember to update all of your pensions with any changes of address
2. Retain details for all of the pension schemes you’ve been enrolled in
3. Get in touch with the government’s tracing service, a free service to help if you can’t find the details of an old pension scheme; you can also call the tracing service on 0800 731 0193
4. Once you have found any missing pensions, research your next options, including consolidation which brings them all together in one place
5. There may be valuable benefits attached to your pensions which you may lose if you consolidate, so always double-check and seek advice or speak to a financial adviser to make sure you make the right decision for you
|
