Brits are being urged to check whether they have any unclaimed pension pots. (Image: Getty)
Brits are being urged to check whether they could be in line for a cash boost after it was revealed that there are more than three million lost pensions across the UK. The Pensions Policy Institute estimates the average lost pension pot is worth £9,470, and that combined these are worth a total of £31.1billion. This means that many people could be missing out on thousands of pounds without even realising it.
Even better, it is free to reclaim an old pension as long as the pot is legally yours. Joe Lytwyn, a personal finance expert at thimbl.com, said anyone who has changed jobs throughout their career should check whether they have any forgotten workplace pensions – particularly if they’ve moved home or not updated their contact details with pension providers.
He said: “Many people don’t realise how easy it is to lose track of a pension. 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 the average lost pension estimated to be worth almost £9,500, taking the time to check could have a meaningful impact on your retirement. 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.”
According to the Pensions Policy Institute’s research, the number of lost pension pots has increased significantly in recent years, largely due to automatic enrolment and people changing jobs more frequently throughout their careers.
The government has a free Pension Tracing Service, which helps people find the contact details of workplace and personal pension providers they may have lost touch with.
Those claiming will need either the name of their former employer or the name of the pension provider, and will be able to access contact details.
Mr Lytwyn added: “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.
“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.”
Moneysupermarket.com says that there are a number of reasons people lose track of pensions including moving house without updating contact details, missing correspondence, and changing jobs and forgetting who your former workplace pension is with.
Additional issues to deal with include pension provider merges or rebrands, or a family member dying and leaving their heirs unaware of existing pension plans.
Unclaimed pensions are often held by providers and the money will remain with the pension.
They can be transferred to a dormant accounts scheme over time, but they can still be claimed.
As reported by the Liverpool Echo, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “When people picture retirement, they often imagine travel, helping family and having the freedom to enjoy their hobbies. But for many, those plans risk remaining dreams rather than reality.
“The good news is most believe they’ll be able to cover their bills. The challenge is making sure you have enough set aside to enjoy the lifestyle you want – and that includes checking you haven’t lost track of an old pension.”