Lost Pensions

Do You Have Lost Pensions?



Posted on: 4th August 2023

Do you know where all of your pensions throughout your lifetime are? If you are uncertain, you may be unaware that as many as 1.6m lost pensions pots remain unclaimed throughout the UK.

One of the biggest reasons many people lose track of their pensions is because of job relocations and house moves, resulting in huge amounts of money that get potentially lost in the system. If you have no idea where to start locating these missing pensions, you can talk with independent financial advisers Cheshire to help you find them.

The Importance of Finding Lost Pensions

In today’s volatile climate, it is extremely important to find your lost pensions and ensure they perform well to provide the best retirement you can get. Most people’s pensions are defined contribution schemes – also known as money purchase plans.

With these types of pensions, the amount is built upon how much you have paid in, how much your employer has contributed if a company scheme and any investment returns. The PPI discovered over 800,000 lost pensions worth an estimated £9.7bn, meaning that an estimated 1.6mn pensions could still be lying around unclaimed.

How Can a Pension Get Lost?

Over the past decade, many of us have moved house or occupied a rental property and have failed to notify our pension providers of address changes. It happens more regularly than you think.

That would mean that annual statements that providers send out will end up unseen or not forwarded, leading to us losing track of our retirement savings. The Government has estimated that 50 million pensions could be dormant or lost by 2050. Shifting work patterns and employment is another factor towards forgetfulness on pension plans.

Upscaling in employment to different companies and employment statuses, with the Department for Working Pensions stating that an average employee will see around 11 separate jobs throughout a lifetime. Two-thirds of UK adults have more than one pension, with millions unaware of how many pensions they have accumulated and lost track of in their lifetimes.

Finding Your Lost Pensions

Uncovering lost pensions can make a significant difference in your retirement planning Cheshire, providing more comfort when you stop working.

The sooner you discover your lost pensions, the sooner you will know that your money is working hard to provide a better later life plan for you. If you have multiple pensions, you may want to look into consolidating them into one, becoming easier to keep track of. You will want to get advice from independent financial advisers Manchester, as some pension plans come with valuable benefits that you may not wish to lose.

For more pension advice Manchester, contact the friendly team at Haven IFA, the best independent financial advisers UK.