There are more than 1.5 million 'lost' pension pots out there. Here's how to track down your old funds.
How so many of us lose track of pensions
A staggering £20 billion worth of pension cash is sat waiting to be claimed by its rightful owners, new data has found.
With workers changing jobs anywhere between five and 15 times in their career, it's all too easy for pension pots to go missing along the way.
In fact, research carried out by the Association of British Insurers (ABI) there are roughly 1.6 million such pots, which are each worth £13,000 on average.
Dr Yvonne Braun, director of long-term savings and protection at the ABI, said its findings highlighted the "jaw-dropping scale" of the lost pensions problem.
"Unclaimed pensions can make a real difference to millions of savers who have simply lost touch with their pension providers," she added.
So how is it that so many pots can simply go missing? A separate survey by wealth management firm Tilney sheds some light on this issue.
If found the main reasons given by respondents was that they have “never kept an interest”, “lost paperwork” or “forgotten to notify providers of address changes”.
Significantly, 20% of people said would have no idea how to find a missing pension, added Andy James, head of retirement planning at Tilney.
"Tracking down missing workplace pensions can be particularly problematic where a previous employer from many years past has been acquired or gone bust, moved or re-branded.
"But it really is vital to track down these pots of assets and to determine whether they remain fit for purpose."
So, how can you go about finding a long-lost pension – or saving some money by consolidating those you have?
Go through your paperwork
Most pension schemes will send you an annual statement that will tell you the balance of the pension at the time of the statement and a projection of what income it might generate when you reach retirement age.
Go through your old paperwork and see if you have anything relating to your pensions. If you find something, contact the pension provider to update your contact details and request an up-to-date statement.
Contact the pension provider
If you have no paperwork but can remember which company administered your pension then get in touch with them and ask them to search their records to see if they can find your pension details.
Try to provide them with as much information as possible to increase their chances of finding your old account.
If you have it give them the plan number, and the date your pension was set up. At the very least give them your full name, date of birth and National Insurance number.
Get the Government’s help
If you have no idea who your old pension provider was then you can still hunt down old pension pots. The Government’s Pension Tracing Service holds the details of over 320,000 pension schemes.
The service launched in May 2016 and has just topped one million searches as people take action to claim their forgotten savings.
You just need to enter the name of a former employer and the service will search to see if you are registered with any pension schemes and provide the contact details you need to go about claiming your cash.
Once you have the details you can contact the provider to ask them to check their records and provide you with an up-to-date statement for your pension.
Contact old employers
If the Pension Tracing Service doesn’t uncover anything and you are convinced you had a pension with a previous job, contact your old employer.
Give them the details of when you were employed for them and your National Insurance number and ask if they can check their records to see if you had a pension.
Pay for help
If all else fails, or you simply can‘t be bothered to put in the legwork you can pay to do a search on the Unclaimed Assets Register.
Provide your name, address and previous contact details and it will search through three million unclaimed share dividends, unit trusts, pensions and life insurance policies.
You’ll pay £25 for the search, but if you are successful the average payout is £6,000.
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