Millions of people are missing out on their full pension as unclaimed pots reach more than £31 billion. There are now an estimated 3.3 million lost pots, containing £31.1 billion worth of assets.
According to the analysis by research charity the Pensions Policy Institute (PPI), as part of the Pension Attention campaign, the average sum of these lost pots is £9,468.93. The average sum rises to £13,620 amongst those aged 55 to 75.
Concerningly, the data reveals the value of lost pension pots in the UK has increased by 60%, or nearly £12 billion, since 2018. Here’s everything you need to know about claiming and tracking your old pension schemes. For money-saving tips, sign up to our Money newsletter here
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How do pension pots become ‘lost’?
According to the Pensions and Lifetime Savings Association this happens due to a combination of factors: “People switching jobs more often and auto-enrolment becoming more commonplace is likely the cause of this increasing number of unclaimed pension pots,” it states. It is important to consider each job you have enrolled at, and whether you might be missing out on certain hard-earned pension pots.
How can I find my old pension schemes?
If you are struggling to track all the pension schemes you have paid into over the years, Age UK advises that you use the pension tracing service on Gov.UK.
It is a free service which helps you trace your pension schemes, even if you do not have the contact details of the pension provider. Age UK recommends collecting as much information as possible before using the service, including:
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The name of your previous employer or pension service (you’ll need this to get started)
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Any previous names it had
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The type of business it ran
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Whether it changed address
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When you belonged to the scheme
What happens if I do not claim my pension schemes?
According to Money Supermarket unclaimed pensions in the UK are typically held by pension providers or pension schemes. If you lose track of your pensions or fail to claim them, the funds remain within these accounts. Over time, unclaimed pensions may be transferred to a dormant accounts scheme, but you can still claim the funds and ensure you receive your rightful benefits.