Switching jobs throughout your career is normal, but it often leads to an unexpected problem: forgotten pensions.
The Pensions Policy Institute estimates there are 3.3 million lost pensions in the UK, worth around £31.1 billion. That's a staggering amount of money sitting unclaimed – and some of it could be yours.
Why pensions get lost
Over the course of your career, you may work for several employers, each offering a workplace pension. When you move on, it's easy to lose track of these schemes, especially if you've relocated or changed your name. Old paperwork gets misplaced, and pension providers may lose contact with you if their records aren't updated.
How to find old pensions
Fortunately, tracing pensions doesn't have to be complicated. The government's Pension Tracing Service is your first port of call. This free service, managed by the Department for Work and Pensions, holds contact details for over 200,000 workplace and personal pension schemes.
To use the service, you'll need some basic information: the name of your previous employer or the pension provider. Once you submit your search, you'll receive contact details for the pension scheme, allowing you to get in touch directly and reclaim what's rightfully yours.
Information you'll need
When you contact the pension provider, have your National Insurance number ready, along with details of when you worked for the company. You should also gather any old payslips, P60s, or annual pension statements that might help identify your account.
Let the provider know if you've changed your name or address since leaving the employer, as this information helps them locate your records more quickly. They will verify your identity and give you information about your pension pot, including its current value and your options for managing it.
Consolidating your pensions
Once you've successfully traced your old pensions, you might want to consider consolidating them into one scheme. This can make your pensions easier to manage and may reduce fees. However, it's crucial to seek professional financial advice before combining pensions, as some older schemes offer valuable benefits – such as guaranteed annuity rates – which could be lost if you transfer.
MoneyHelper offers free, impartial guidance to help you make informed decisions about your retirement savings.
Don't delay
The sooner you start tracing pensions, the better. Those forgotten pots could make a significant difference to your retirement income, and finding them now gives you more time to make strategic financial decisions. Even a small pension from a short-term job could grow substantially over time.
Remember, finding a lost pension isn't just about tracking down old money – it's about taking control of your retirement planning and ensuring you have the financial security you deserve in your later years.
If you need help tracing your old pensions or want advice on consolidating your retirement savings, get in touch with our team of qualified financial advisers today.
