Pensions - Articles - The riddle of the UK's missing pensions


New research* shows 23% of UK adults have lost track of at least one pension
Consumers are confused and uncertain about how to trace a pension
23% of younger workers (25-34) have already worked for five to six employers – matching the average total for those aged 65+1

 A shift in working cultures and confusion around retirement planning is resulting in a pension ‘black hole’, with almost a quarter (23%) of UK adults stating they have lost track of at least one pension scheme – according to a new online poll* for Age UK.

 The poll, commissioned to understand more about people’s attitudes and plans for retirement, reveals that nearly a third (30%) of UK adults would try to trace a pension if they realised they had lost track of it. However, people are unsure about how and where to start hunting these pensions down.

 Reasons behind the UK’s missing pensions:

 - Nearly half of all missing pensions (47%) are simply ‘lost in the mists of time’
 - 1 in 5 (20%) people missing pensions say they have lost their pension paperwork
 - 10% blame the fact that they’ve moved jobs too many times to keep track of their pensions
 - Younger generations are more likely to have lost track of a pension2, with 37% of those aged 18-44 already  having experienced this.

 Lost pensions: a symptom of the times

 The trend for adults to have a variety of employers over a lifetime, often resulting in multiple work place pensions, is one of the root causes of the emerging pension ‘black hole’.

 Tellingly, the average person over 65 has worked for around 6 (5.6) employers in total, while a quarter (23%) of those aged 25-34 have already worked for a similar number - yet have more than approximately 35 years left before they are likely to retire. This indicates that the younger generation will almost certainly have a variety of pension pots as they get older.

 With the UK’s financial situation remaining precarious, the findings revealed a mixture of scepticism and uncertainty about long-term financial planning, with 12 per cent saying they don’t think that there is any point as ‘nothing is guaranteed’, and nine per cent not knowing how to start out planning for retirement.

 Worryingly, 24% of adults said that they were aware that they should be financially planning for their retirement, but currently can’t afford to.
 Tracing a pension

 Age UK’s research shows that there is much confusion and uncertainty about how to trace a pension. If they realised that they’d lost a pension, nearly a quarter (23%) of potential pension-hunters would ask previous employers for help; 15% would consult the government or tax office; 11% would look online for advice; and seven per cent would turn to a friend or relative for help.

 Commenting on the findings, Lucy Harmer, Head of Services at Age UK, said: 'It’s really important we all set aside time to keep on top of our personal admin, such as organising paperwork and keeping details of any financial products safe and secure. This is especially crucial for pensions as it may be some years down the line until they need to be accessed.

 'With the number of jobs we have over a lifetime increasing, it’s likely that people will accumulate several small pension pots. In many cases these bring a less fruitful income in later life than one large pension pot.'

 Lucy Harmer continued: 'While some measures are being taken by the Government to account for smaller pension pots likely to be created under automatic enrolment, existing pots that we may already have are not being accounted for. This makes it more important than ever that we keep on top of what we have already accumulated.

 'We strongly advise people to seriously think about planning for retirement and the kind of lifestyle you want - it’s never too early. At Age UK we have a range of information and services available to help with pension preparations, including a pension planner, help and guidance, as well as information on the state pension.'

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.