New research from Moneybox has revealed that workers across the UK could be missing out on as much as £26,042.50 in forgotten pension savings. In Wales, the figure rises to almost £38,000, prompting a fresh warning for savers to track down lost pots.
Lost pension pots worth billions
The warning comes as workers may have had multiple employers throughout their careers, with each employer potentially enrolling them in a separate pension scheme. Each company typically selects its own plan, making it difficult for individuals to keep track of the funds contributed across different jobs. As a result, it is estimated that billions of pounds in pension savings are being held in lost pots.
Moneybox used the current average value of a lost pension pot (£9,470) to make its calculations. The firm says this shows that people in Wales could potentially be missing the equivalent of four pension pots, worth as much as £37,880.
Expert advice: small steps, big impact
Brian Byrnes, director of personal finance at Moneybox, drew an analogy for savers. "Forgotten pension pots are a bit like weeds in a garden. Left untouched they can hamper the growth of your plants, it’s important to keep tidying them up and keep track of what you’ve planted and where it is. Keeping old pension pots separated could stop your retirement savings from reaching their full potential."
Byrnes stressed that the solution is straightforward. "The good news is that tracking down old pensions is one of the simplest actions people can take to improve their long-term financial future. Even if each pot seems relatively small, together they can add up to tens of thousands of pounds that could make a real difference in retirement."
He added: "Retirement planning doesn't have to feel overwhelming. Like gardening, it's about taking small, consistent actions over time. Finding an old pension, reviewing your savings or bringing everything together in one place are all simple steps that can help grow a retirement full of possibilities."
Impact on retirement planning
The research highlights the cumulative effect of small, forgotten pots. With the average lost pot valued at £9,470, even two or three such pots can represent a significant addition to retirement income. For savers in Wales, the potential loss of nearly £38,000 could substantially affect their standard of living in later life.
Moneybox's findings underscore the importance of consolidating pensions and maintaining an up-to-date record of all workplace schemes. As workers change jobs more frequently than in the past, the risk of losing track of pension savings grows. The firm advises savers to use its tools or government services to locate old pots and consider transferring them into a single plan.
