Average saver has three lost pensions containing around £13,000

03 December 2024

More than a quarter (29%) of UK adults are unsure how many pension pots they have, with an average of three "lost" pensions totalling an average of around £13,000, according to new research.

This research from Moneyfarm aligns with data from the Pensions Policy Institute, which estimates 3.29 million unclaimed pension pots in the UK are collectively worth £31.1 billion.

The data highlights the potential difficulties of managing multiple pension plans, which leaves 27% of people feeling worried or frustrated according to Moneyfarm. Yet despite this, 18% say they have no concerns, believing there’s plenty of time to track them down later in life.

Speaking about the research, Moneyfarm pensions technical expert Carina Chambers explained: “Pensions are not easy to keep track of over a lifetime, so it’s quite common for one, if not more, to get overlooked and forgotten about.

“If you are one of these people, then the first thing you need to do is learn how to find lost pensions so as to maximise your savings for retirement." 

For those looking to track their lost and forgotten pension funds, our guide on how to trace lost pensions and the Government’s Pension Tracing Service are useful sources of information. 

As more people take steps to locate their lost money, the Pension Tracing Service is on track for a record-breaking year, as the volume of enquiries about lost pensions continues to rise. According to the latest data, it expects to surpass the previous record of 63,381 calls in 2023.

Telling pension providers when you move home is key

One of the reasons pensions are forgotten is that people fail to update their providers when they move house. While pension providers send annual statements, these can go missing if contact details are out of date.

According to the research, only 15% of people instinctively notify their pension provider after a house move, compared with 74% who inform their bank in a timely fashion, 62% their doctor and 50% their energy supplier.

Moneyfarm warns that losing track of pensions is an issue that becomes more complex with every job change, as the number of lost pensions increases. For those approaching retirement, it’s vital to locate lost funds sooner rather than later to make the most of your hard-earned money.

Source:

More than a quarter (29%) of UK adults are unsure how many pension pots they have: Over quarter of savers unsure of how many pension pots they have. FT Adviser. Accessed 24 November 2024.