An estimated £31.1billion is lying in unclaimed, inactive or lost pension pots, new figures show - with the average pension pot worth £9,469.
New analysis by charity the Pensions Policy Institute (PPI) shows around 3.29 million pension pots are now considered lost. There are many reasons why people can lose track of pension pots - for example, if you've changed jobs or you've moved and your pension provider does not have your current contact details.
For people aged 55 to 75, the average lost pension pot is worth £13,620. The PPI defined lost pots as those managed by a pension provider who is unable to contact the owner of the pot. The new figures are released as part of the Pension Attention campaign, which is co-ordinated by the Association of British Insurers (ABI) and the Pensions and Lifetime Savings Association (PLSA) and funded by pensions industry bodies. It comes ahead of National Pension Tracing Day on Sunday, October 27.
Chris Blackwood, spokesperson for the Pension Attention campaign said: “If you can do one thing today, visit pensionattention.co.uk and use the pension tracing tools to find any lost pension pots. It only takes a few clicks, and you could substantially add to your pot. 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.”
How to track down lost pensions
The total value of lost pension pots in the UK is thought to have surged by nearly £12billion since 2018 - but luckily, tracking down forgotten cash is easier than you may think. The Pension Tracing Service is free to use and allows you to search a database of more than 200,000 workplace and personal pension schemes.
It will only tell you the contact details of a provider - not the amount you could have in a pension - so you'll need to contact the pension administrator yourself to find out if you have any funds with them. Alternatively, you can contact your employer and they should be able to provide you with the right details.
Pension Wise is a Government service that offers free pension guidance and advice. The Mirror previously reported on how one mum found £48,000 in just one forgotten pension pot. PR director Karin Ridgers, 52, who is mum to 17-year-old son Callum, said she had no idea how much money she had accrued in workplace pensions over the years.
The Pensions and Lifetime Savings Association (PLSA) released its latest Retirement Living Standards index earlier this year, which shows how much money you need in later life to cover basic expenses, as well as luxuries.
The retirement income needed for a “minimum” living standard has increased from £12,800 to £14,400 (12.5%) for a single person and from £19,900 to £22,400 (12.6%) for a couple. For a "comfortable" retirement, the cost has risen from £37,300 to £43,100 (15.5%) for one person and from £54,500 to £59,000 (8.3%) for a two-person household.