Martin Lewis says workers with multiple jobs should check for forgotten pension pots. (Image: ITVX)
Martin Lewis has urged millions of workers to track down forgotten pension pots, warning that people who have changed jobs several times could be missing out on thousands of pounds without even realising it.
The Money Saving Expert founder issued the advice during an episode of his BBC podcast, where he explained that many people build up multiple workplace pensions over the course of their careers but often lose track of them.
Lewis said anyone who has worked for several different employers should make checking their pensions a priority.
Lewis said some people have discovered retirement savings worth more than £100,000. (Image: Getty)
He said: “If you’ve had lots of different jobs, you will have lots of different pensions. You absolutely do need to keep track of it.”
The financial expert warned that changing jobs frequently can make it easy to lose paperwork relating to old workplace pension schemes, leaving many savers unaware of how much money they have accumulated.
However, he stressed that a lost pension does not mean the money has disappeared.
Lewis said he regularly hears from people who are astonished to discover sizeable retirement savings they had forgotten about decades earlier.
“I often get messages from people who say, ‘I can’t believe it. I had a pension when I was 21. I worked there for a couple of years. I’d forgotten about it. I’m in my 50s or 60s now. I heard you talk about Gretel or the Pension Tracing Service, and they’ve just told me there’s £120,000.’ It can be real money,” he said.
For anyone trying to locate an old pension, Lewis recommended starting with the Government’s Pension Tracing Service, which helps people find the contact details of previous pension providers.
He also highlighted the free financial technology service Gretel as another option for tracking down forgotten pension pots.
Lewis explained: “You can use the Government Pension Tracing Service if you know the company you worked for.
“And while it doesn’t cover as many different pension schemes, you can use the free fintech firm, Gretel, which can also track old pensions for you if you haven’t kept track of them.”
After locating old pension pots, many people may consider combining them into a single scheme.
Lewis said pension consolidation can make retirement savings easier to manage but warned it is not always the right decision.
“You can consolidate. Consolidating is often a good idea, but there are pros and cons,” he said.
He encouraged savers who are unsure to seek free guidance from Pension Wise before making any decisions.
“I would always suggest if you don’t know what you’re doing with pensions, you get in touch with Pension Wise, which is a sort of a semi-governmental agency to give you free guidance on pensions.
“You can just call them up or go online. You can ask them your questions because consolidating is good for many, but there are some holes in it for some people, and you need to talk to them one-on-one to work out whether it’s best for you.”
With millions of workers likely to have changed employers several times during their careers, Lewis’s advice could help many uncover retirement savings they never knew they had.