pension pot

Failure to update addresses leads to £19.4 billion unclaimed pension pots

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havenifa


Posted on: 14th May 2020

According to the ABI, pension savers who are reluctant to inform their providers of their new residence may be the reason behind £19.4 billion in unclaimed pension pot funds. It said that consumer research suggests that only 4 per cent of people would consider letting their pension provider know when they move home.

Estimates by the ABI suggests that approximately 1.6 million pension pots are currently left unclaimed. This is equivalent to £13,000 per pension pot. Insurers are currently in the process of reuniting people with their lost pensions, life insurance, and investments. This is typically done in the form of a letter to their new address. Typically, people move home eight times in their lifetime.

According to predictions by the government, there could be as many as 50 million dormant and lost pensions by 2050.

In 2017, over 375,000 attempts were made to contact customers, leading them to be reunited with £1 billion in assets.

Yvonne Braun, director of policy, long-term savings and protection at the ABI said: “During the lockdown, many of us have been focusing on those jobs that never get done, so now is the perfect opportunity to check all your financial information is up to date with the correct address. It is simple to do. All you need is to check the address on your last annual statement or log in to your provider’s website.

“Don’t worry if you don’t have this information, we have a guide on our website to help track your insurance and pension policies and some tips on responding to tracing letters, along with our members’ contact details.

“Long-term savings providers will continue to work hard to reunite people with their lost money. People deserve all the cash they are entitled to. To ensure more people than ever are reconnected we will continue to work with Government to explore ways data can be used to verify customer addresses.”

Minister for Pensions and Financial Inclusion Guy Opperman said: “I would strongly encourage anyone who thinks they may have an unclaimed pension pot to visit gov.uk and use our Pension Tracing Service.

“This research also adds to the already substantial case for making pension dashboards a reality. They will help bring pensions into the digital age and transform how we all think about and plan for retirement by giving savers information about their pensions at the touch of a screen.”

Keep on top of your pensions with help from Haven IFA

If you fear you may have missing pensions and would like to keep track of your savings for a better financial future, we can help. At Haven IFA, we aim to help individuals in Greater Manchester get the most from their investments for an enjoyable retirement. Get in touch to find out more.

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