Pensions are something that most people don’t consider until later in their lives. As such, people can contribute to a pension scheme every month but still find it challenging to maintain track of it.
Indeed, misplaced or lost pensions are so common that there is almost £20 billion worth of unclaimed UK pension funds. This figure is quite staggering, considering pension holders will have worked hard to make contributions throughout their working lives. Therefore, it is a shame this money will potentially be wasted.
This article aims to help you understand how to track down lost or misplaced pension schemes so that you can recover money that is rightfully yours.
How Come So Much Pension Money is Unclaimed?
As we alluded to above, there is currently around £20 billion worth of unclaimed pension funds. This massive amount of money comprises approximately 1.6 million pension pots, averaging around £13,000 each. We didn’t simply pluck these figures out of the sky; they are official data from the Association of British insurers.
You may be asking yourself how this amount of pension funds could be left unclaimed. Let’s take a look at a few reasons.
Moving Home
A house move involves considerable administration and upheaval to your daily life. Consequently, some things get lost in the administrative mayhem that accompanies moving home.
As pensions aren’t one of the most pressing matters at these times, these are often the things that get misplaced. Few people consider contacting their pension provider to inform them of the pending change of address. Indeed ABI research shows that only 4% of pension holders remember to include their provider on their list of relocation administration.
If you are one of the majority who overlooks this crucial piece of admin, some of your money could be part of the £20 billion unclaimed pension funds. Providers send out annual statements, including your expected retirement income. However, if you fail to update them about your new circumstances, they’ll continue to send these to your previous address. Without a regular prompt, you could lose track of your pension, consequently losing money.
Change of Employment
Another reason for losing track of a pension is changing jobs. You stop contributing to your old employer’s workplace pension when you change jobs and commence a new scheme. Since your focus has changed to the one you currently pay into, it is possible to forget about your old pension, meaning it could get lost.
Tracing Lost Pensions
As if changing jobs or moving home didn’t make keeping track of your pension challenging enough, there are other potential complications. For instance, schemes can become merged, renamed, or closed, making them more difficult to locate.
Gathering relevant paperwork should be your first action when tracking your old pension plans. If you no longer receive an annual statement because your address has changed, you should contact your provider or previous employer to get details of your scheme.
Contact Your Provider
Your pension provider will require specific details to locate your plan. When they have all the information they need, they can give you the following:
- Your pension pot’s current value.
- How much you’ve contributed.
- Potential retirement income.
Contact Your Old Employer
If you are trying to track down an old workplace pension, you should first contact your former employer. They’ll be able to give you details about the type of scheme you were part of and who the provider was.
Other Ways to Track Down Old Pensions
Speaking with a financial advisor is another way of tracking down an old or lost pension. Check out Portafina. They can advise you on gathering all the information you need. More than that, they can do the leg work for you and relocate your lost pensions. Another advantage of using a financial advisor is that they can analyze your plans, helping you determine if they are suited to your circumstances. It means you could significantly boost your retirement savings.
Checking old bank statements and payslips can give clues as to who your pension provider was. However, remember that your pension provider may have merged with or been taken over by another company. This situation can make tracking your old plans more challenging.
You’ve Located Your Pensions, Now What?
Relocating lost or misplaced pensions will put you in a much better position for retirement. However, now that you’ve found these plans, you must decide what to do with them. First, you want to ensure you don’t lose track of them again. Therefore, you might consider moving your funds to a current action plan. Changing your pension plan to another provider is also an option, as it could reduce your charges and improve performance.
More Funds Means a More Comfortable Retirement
Losing track of a pension is more common than you might imagine. Indeed, there are billions of pounds languishing in misplaced plans. If some of this money is yours, you should track it down as soon as possible.
Hopefully, this article will inform you how to find your lost pensions so that you can enjoy a more comfortable retirement. If you don’t have the time to find them, you can speak with a financial advisor to relocate them.
