Millions of workers are being urged to check whether they have a forgotten pension after new research found there are an estimated 3.3 million lost pension pots across the UK worth a staggering £31.1 billion.
The figures, from the Pensions Policy Institute, suggest the average lost pension is worth £9,470 – meaning many people could be missing out on thousands of pounds they have saved for retirement without even realising it.
Experts say anyone who has changed jobs during their career, moved house or forgotten to update their pension provider should take a few minutes to check whether they have money waiting to be reunited with them.
Joe Lytwyn, personal finance expert at thimbl.com, said: "Many people don't realise how easy it is to lose track of a pension."
He added: "If you've changed jobs several times over the years, there's a good chance you've built up more than one workplace pension, and it's surprisingly easy for one to slip through the cracks."
With automatic enrolment meaning millions more workers now pay into workplace pensions, the number of forgotten pension pots has risen significantly in recent years.
According to the research, the average lost pension is now worth almost £9,500.
Lytwyn said: "With the average lost pension estimated to be worth almost £9,500, taking the time to check could have a meaningful impact on your retirement."
He added: "Even if you think you've kept on top of your finances, it's worth making sure there isn't an old pension sitting with a previous employer."
Why do people lose track of pensions?
Experts say the most common reasons include:
- Changing jobs and forgetting about an old workplace pension.
- Moving home without updating contact details.
- Losing paperwork from previous employers.
- Pension providers changing their name or merging with another company.
- Building up several workplace pensions over the course of a career.
How to find a lost pension
The Government offers a free Pension Tracing Service, which helps people find the contact details for workplace and personal pension providers they may have lost touch with.
While it won't tell you how much your pension is worth, it can help reconnect you with the provider so you can trace your savings.
Lytwyn believes it's one of the most overlooked financial checks people can make.
He said: "People often spend time switching bank accounts, comparing insurance or hunting for savings on household bills, but checking for an old pension is something that's easily overlooked."
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He added: "The process is usually much simpler than people expect, and spending a few minutes searching today could help reunite you with retirement savings that belong to you."
With the average lost pension worth £9,470, experts say checking now could provide a welcome boost to your retirement plans.
Lytwyn added: "The more jobs you have throughout your working life, the more important it becomes to keep track of your pension savings. Checking now could give you a clearer picture of your retirement finances and potentially reconnect you with money you didn't even know you had."
Have you found a lost pension? Tell us in the comments below...
