Nearly 3.3 million pension pots are lost in the UK, with an average of £9,470 sitting in each one, according to new research by Pensions UK. A simple three-minute check using free tracing tools could help savers recover these funds, potentially boosting their retirement savings significantly.
The Scale of Lost Pension Savings
The research reveals that the total value of lost pension pots increased by nearly £12 billion between 2018 and 2024, representing a rise of 60%. Older savers may have even more at stake, as the average lost pot belonging to someone aged between 55 and 75 is worth £13,620.
Chris Blackwood, spokesperson for the Pension Attention campaign, said: “If you can do one thing today, use our pension tracing tools to find any lost pension pots. It only takes a few clicks, and you could substantially add to your pot.”
How to Trace a Lost Pension
Savers can begin a search in just a few minutes by listing their former employers and using the Government’s free Pension Tracing Service. The service helps people find the contact details of the pension scheme connected to an old employer. Savers can then approach the provider to establish whether they have money held in the scheme.
Blackwood added: “Additionally, you could also retrace your career steps, check old papers, look for any gaps in your pension history, and contact your provider to update your contact details.”
Additional Steps to Recover Funds
People have also been advised to check old paperwork, look for gaps in their employment and pension history, and make sure providers have their current address and contact information. Finding a forgotten fund does not mean people will immediately receive the money as cash, as it remains pension savings and will generally be subject to the usual rules governing when and how retirement funds can be accessed.
However, locating the account allows savers to keep track of their money, check how it is invested, and take it into account when planning for retirement.
