Nearly 3 million UK pension pots are unclaimed

16 October 2024

Written by Retirement Line

One-in-five people (19%) with multiple pension pots believe they have lost track of at least one of them, according to new research. 

The findings highlight the growing challenge of keeping tabs on our retirement savings as we move between jobs. 

If you are approaching retirement in particular, it’s crucial to ensure all your pension pots are accounted for. Losing track of pensions could mean missing out on a substantial portion of your retirement income. 

£26.6 billion unclaimed in pension pots

The findings from Standard Life reveal that an estimated 2.8 million pension pots in the UK, worth more than £26.6 billion, remain unclaimed. The average person works for at least 11 employers during their career, according to Standard Life, so it’s easy to see how pensions become lost in the shuffle. 

Standard Life’s research also reveals that three-quarters (73%) of those with more than one pension pot have not consolidated their pensions. 

Consolidation can potentially provide several benefits, including simplified management, easier tracking of retirement progress, and even reduced fees. However, many people remain uncertain about how to go about consolidating. Over a third (32%) admit they are unsure where to start, while 12% find the process too difficult.

The importance of tracing lost pensions before retirement

When you start a new job, you are typically enrolled into a new workplace pension, but your old pension doesn’t follow you. Taking steps to trace pensions can lead to a clearer understanding of your total retirement savings. It also means you’ll know where your money is when you come to need access to it. 

Spending just an hour or two tracing your lost pensions could make a welcome difference to your retirement income. All it takes is some basic information like your National Insurance number and details of previous employers to get started. With the average lost pension pot being worth almost £9,500, reclaiming just one of these could bring a nice boost to your retirement savings. 

If you’ve worked for multiple employers and are unsure of how many pensions you’ve accumulated, the government’s Pension Tracing Service can help you recover what’s rightfully yours. 

Find out more in our guide to tracing lost pensions.

Sources:

2.8 million UK pension pots worth more than £26.6 billion remain unclaimed:Multi-pot pension culture: a fifth of people have lost track of one of their pension pots. Standard Life. Accessed 14 October 2024.

Average lost pension pot worth almost £9,500: You’ve got an extra hour in October – use it to track down your old pensions. Standard Life. Accessed 14 October 2024.