Tracing your old and lost pensions

Pension Feat

The lost pensions challenge in the UK has grown significantly in recent years, further exacerbated by the pandemic, which resulted in a large proportion of people moving jobs. A recent Pension Policy Institute research briefing calculated the total value of lost pension pots has grown to £26.6bn in 2022[1].

If you’ve worked for several employers throughout your career, you might have accumulated multiple pension plans. You may also have set up personal pensions, especially if you’ve been self-employed or a contractor at some point.

ADMINISTRATIVE BURDEN

Owning multiple pensions can be an administrative burden, but it could also be costing you financially – whether that’s through excessive fees or poor investment performance. Today, nearly half (46%) of UK pension holders have lost track of some of their pension pots, according to new research[2].

This means that – against the backdrop of the rising cost of living – millions of people across the country could right now be missing out on pension pots that are sat with their previous employers.

RETIREMENT PLANS

Nowadays, the average UK employee has 11 jobs over their lifetime, the research highlights. So, while it’s understandable that savers may forget how many pension pots they’ve accrued over the years, they currently risk incurring unnecessary management fees – or even missing out on those savings altogether – at a time when higher inflation threatens to spoil their retirement plans.

Moreover, savers who have kept track of their pension pots will be in a much better position to make informed retirement decisions when they get older. 13% of people did not know how to track down a pension pot from their previous job. And although savers currently have the option of combining their pensions, 16% didn’t know how to go about tracing their lost money.

MULTIPLE PENSIONS

This lack of knowledge is particularly worrying. Having multiple pensions with different employers or pension providers can create an unnecessary headache for retirees, and this will come at a time in life when things should ideally be less challenging for them.

To complicate matters even further, the number of workers with small pension pots of under £1,000 has skyrocketed in recent years. The Pensions Policy Institute (PPI) has predicted that the problem is only going to get worse, with the number of small pots set to triple to 27 million by 2035.

BETTER RETIREMENT

The recent PPI research on lost pension pots also indicated that the speed at which pension pots were being classified as lost was increasing, with an extra 1.2 million pots having been ‘lost’ in the four-year period between 2018 and 2022. That’s a 75% increase in lost pots in just four years.

While consolidation will not be the best option for all pots, for some people consolidating their pensions into one pot would undoubtedly bring them much closer to their money, increasing their sense of ownership and control, and potentially setting them up for a better retirement.

LOOKING TO KEEP TRACK OF YOUR FINANCES MORE EASILY?

Consolidating your pensions into one pot could help you keep track of your finances more easily, reduce charges and boost how much money you have in the future. But while there are advantages to pension consolidation, there are potential drawbacks and it’s important to seek advice on whether it’s right for you.

If you would like to review your current plans, to meet your financial goals now and in later life, please contact our partner, Pareto on 0161 819 1311.

Enjoyed this? Read more from Pierce CA Ltd

Latest news

1

New five-story hotel set for Morecambe Morecambe 86 Bedroom Hotel

New five-story hotel set for Morecambe

08 Dec 2023

2

Enterprise Zone expansion recommended for approval Blackpool Airport EZ Masterplan Visual Dec 2023

Enterprise Zone expansion recommended for approval

07 Dec 2023

3

Green light for 1.6million sq ft Central Lancashire employment site Lancashire Central Illustration

Green light for 1.6million sq ft Central Lancashire employment site

07 Dec 2023

4

Boost launches exclusive programme to help businesses scale 05-ScaleToThrive.jpg.jpg

Boost launches exclusive programme to help businesses scale

08 Dec 2023

5

Cowgills senior promotion follows surge of successful transactions Brad and Ian.jpg.jpg

Cowgills senior promotion follows surge of successful transactions

08 Dec 2023

Fob Advert 980x120
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Help to Grow Management Course
Collaboration v3.png.png
LBV Hub Seminars
31 Oct 2023 - 14 Feb 2024

Help to Grow Management Course

University of Central Lancashire, School, Online and face-to-face , UCLan, PR1 2HE

09:30 - 11:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
12 Dec 2023

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
12 Dec 2023

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Withnell, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Lancaster - Eden Business Network
Eden Business Network.png.png
LBV Hub Networking
13 Dec 2023

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Hatters.png.png
LBV Hub Networking
13 Dec 2023

Business Networking in Preston - BNI Diamond

Norman Jepson (Beefeater), Bluebell Way, Preston, PR2 5PZ

07:15 - 09:00

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
14 Dec 2023

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

Discover the power of BNI ONLINE - Business Networking in Lancashire
Preston.png.png
LBV Hub Networking
14 Dec 2023

Discover the power of BNI ONLINE - Business Networking in Lancashire

Online Meeting, -, -

09:30 - 11:00

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
14 Dec 2023

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
15 Dec 2023

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
15 Dec 2023

Business Networking in Preston - BNI Brunch

Samlesbury Hotel, Preston, PR5 0UL

09:30 - 11:00

Business Networking in Lancaster - Eden Business Network
Eden Business Network.png.png
LBV Hub Networking
20 Dec 2023

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Discover the power of BNI ONLINE - Business Networking in Lancashire
Preston.png.png
LBV Hub Networking
21 Dec 2023

Discover the power of BNI ONLINE - Business Networking in Lancashire

Online Meeting, -, -

09:30 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV Advertising Visual NovDec
Subscribe now

Weekly news bulletin