New In-App Feature Targets Millions of Unclaimed Pensions
Scottish Widows has introduced a new pension tracing tool within its app, designed to help users locate lost pension pots from former employers. The tool aims to address the estimated 3.3 million lost pension pots in the UK, which collectively hold £31.1 billion in unclaimed savings.
Customers who use the tool can opt to merge separate pension plans into a single pot. Since its redesign in 2024, the app has recorded over 1 million registrations and facilitated more than £1.2 billion in in-app pot consolidations.
How the Tracing Tool Works
Once logged into the app, users enter their National Insurance number to initiate the tracing process. The Pension Lab then contacts relevant providers on their behalf. Users can also supply additional information—such as previous employers, the pension provider, and years of active membership—to expedite the search.
The launch comes ahead of the long-proposed Pensions Dashboard, which is expected to go live by the end of this year. The dashboard will provide a centralized online portal for individuals to access information on all their pension pots.
CEO Highlights Importance of Reconnecting with Savings
Chira Barua, CEO of Scottish Widows, stated: “Too many people are going into later life without a clear picture of what they have saved, simply because their pensions are scattered across different jobs and providers. With millions of pots sitting unclaimed across the UK, helping people reconnect with their savings is an important first step in improving retirement outcomes.”
Barua added: “We’ve made pension tracing simple and accessible, so people can understand their future finances and take control of them. By combining innovation with practical support, we are helping more people turn good intentions into meaningful action.”
Engagement Through Gamification
Alongside the tracing tool, Scottish Widows has launched a game called ‘Ace the Trace’ to encourage greater engagement with retirement planning. The initiative is part of a broader effort to simplify pension management and boost financial preparedness for later life.
