Brits given £9k missing pension alert – do 1 thing | UK | News
Millions of people could have forgotten thousands of pounds worth of retirement savings without even realizing it; the average lost pot is now worth almost £9,500.
An estimated 3.3 million pensions remain unclaimed across the UK, according to industry figures; The Pensions Policy Institute (PPI) estimates that the average missing pension is worth £9,470.
Anyone who has worked for more than one employer over the years may be affected; because workers are automatically included in a workplace pension scheme when they start a new eligible job.
The simplest way to check is to use the Pension Tracking Service, which helps people reconnect with old workplace pensions they may have forgotten about.
Scottish Widows now makes the service available via its app, allowing customers to search for missing pensions without leaving the platform.
To begin the search, users need to enter details such as the name of their previous employer and the dates they worked there. If they know who manages the pension, they can also add those details before submitting their claim.
Chira Barua, chief executive of Scottish Widows, said: “Too many people go into later life without a clear picture of what they have saved, with their pensions spread across different jobs and providers.
“With millions of bonds sitting unclaimed across the UK, helping people reconnect with their savings is an important first step in improving retirement outcomes.”
People exploring multiple pensions may decide to combine them into a single plan, which can reduce expenses. But experts warn savers should always check whether they are giving up valuable benefits before transferring any money, especially if they have a defined annuity that guarantees an income in retirement.
If you’re not sure what to do after tracking down an old pension, you can get free guidance through the Government-backed Pension Wise service for people aged 50 and over.
The need to trace old pensions has increased since automatic enrollment became the norm. Workers contribute 4% of their qualifying earnings to their pensions, employers contribute 3%, while the Government contributes an additional 1% through tax relief.
Even pensions accumulated over a relatively short period of time can continue to grow through investment; This means forgotten savings may now be worth much more than expected.
