Savers are being encouraged to track down their pension information before making any commitments to their retirement income.
New government figures reveal an estimated £400million* lies in pension pots that have either been lost or forgotten by savers.
According to Age UK, 23 per cent of UK adults hold at least one pension which they have lost track of and ultimately go unclaimed. Nearly half of all missing pensions are simply ‘lost in the mists of time’, with the average person over 65 working for around 6 employers during their career.
As few people remain with one employer throughout their career, it is very easy to accumulate a number of smaller pension pots. Often, when savers move house they forget to tell the companies who hold their funds, meaning their annual statements are lost and the funds are forgotten about with time.
In the build-up to retirement, undoubtedly the most important decision savers have to make is how to take their retirement income. Having up-to-date pension fund statements for each pot you have accumulated over your career is central to this. Without this information to hand, making an informed decision about what products and options are best for you will be much more difficult.
People nearing retirement with a number of smaller pots are also being encouraged to take the time to gather two important pieces of information: the name of every company who currently holds a pension fund for you, and your policy number(s). With that information a specialist can work on your behalf to get you the best deal for your retirement income.
For those who need help locating their lost pension policy information, the Department of Work and Pensions offers a new pension tracing service. You can contact them on 0345 6002537.
David Slater, CEO of Retirement Line said: “With a number of people losing track of their pension pots over their career, and an even larger number of workers possessing multiple pension pots to deal with at retirement, it is vital to seek the assistance of a specialist in retirement income before making any decisions.”
“Our specialists can contact each provider to find out if there are any hidden benefits or penalties in a policy that need to be identified, especially valuable benefits which would be lost when transferring to another retirement income provider. We can also consolidate the smaller pots in to one larger fund on the customer’s behalf, often resulting in a more attractive rate being achieved and a higher retirement income for life.”
Are you approaching retirement?
You could get up to 75% more income for life by instructing a specialist to search the market for a better annuity deal for your pension fund, rather than proceeding with your existing provider(s). Request a free pension policy review today by calling 0800 652 1316.
*DWP 9th May 2016