Millions of people across the UK could be sitting on retirement savings they don’t even realise they have. After years of changing jobs, moving home or switching pension providers, it’s surprisingly easy for workplace pensions to be forgotten, leaving thousands of pounds unclaimed.
Recent estimates suggest that around £31 billion is held in lost or forgotten pension pots, prompting experts to encourage workers and retirees alike to review their retirement savings. While the money hasn’t disappeared, many people have simply lost track of where their pensions are held.
With the cost of living continuing to affect household finances, finding an old pension could provide a valuable boost to someone’s retirement plans.
Why are so many pensions being forgotten?
Changing jobs is one of the biggest reasons people lose track of their pensions.
Most employees are automatically enrolled into a workplace pension, and each new employer may set up a different pension scheme. Over the course of a career, it’s not unusual for someone to build up several pension pots with different providers.
If you move house and forget to update your contact details, important letters may never reach you. Years later, it can become difficult to remember where those pensions are held.
The money remains yours, but tracking it down may require a little research.
What does the £31 billion figure mean?
The headline figure doesn’t mean billions of pounds have gone missing.
Instead, it refers to the estimated value of pension savings that people have lost contact with because they no longer know which provider holds the money or how to access it.
Some forgotten pots contain only a few hundred pounds, while others could be worth several thousand. The amount depends on how long contributions were made and how the pension investments have performed over time.
Who is most likely to have a lost pension?
Anyone who has worked for more than one employer could potentially have an old pension.
You may be more likely to have a forgotten pension if you have:
- Changed jobs several times.
- Worked for different employers over many years.
- Moved home without updating your pension provider.
- Changed your name after marriage or divorce.
- Worked part-time for different companies.
- Forgotten about a pension from an early career job.
Even if a previous job only lasted a short time, it’s still possible that pension contributions were made on your behalf.
How can you check if you’ve lost a pension?
The first step is to make a list of previous employers and roughly when you worked for them.
Old payslips, P60s or employment contracts may help you identify the pension provider. If you no longer have those records, your former employer may still be able to tell you which scheme they used.
It’s also worth checking any paperwork you already have at home, as annual pension statements are often overlooked or filed away.
Keeping your current address updated with pension providers is one of the easiest ways to avoid losing track of your savings in the future.
Why finding an old pension could make a difference
Many people assume an old workplace pension isn’t worth much, particularly if they only stayed in a job for a few years.
However, pension savings can continue growing over time through investment returns, meaning the value may be higher than expected.
Even a modest pension pot could provide extra income in retirement or become part of your wider retirement planning.
For younger workers, knowing exactly what retirement savings you already have can also make it easier to plan future contributions.
Should you combine your pension pots?
Some people choose to combine several pensions into one plan to make them easier to manage.
While consolidation can simplify retirement planning, it isn’t always the right choice for everyone. Older pension schemes may include valuable guarantees or benefits that could be lost if the money is transferred.
Before moving any pension, it’s sensible to understand exactly what your existing scheme offers and consider seeking regulated financial advice if you’re unsure.
Don’t ignore pension paperwork
It’s easy to put pension statements to one side, especially if retirement still feels a long way off.
But reviewing those documents from time to time can help you keep track of your savings and spot any missing pension pots before they become harder to trace.
Taking a few minutes to organise your pension records today could save a lot of time in the future.
Looking ahead
With automatic enrolment meaning more people than ever are building workplace pensions, the number of forgotten pension pots is expected to grow unless savers keep their records up to date.
Whether you’re approaching retirement or still years away from it, knowing where your pension savings are held is an important part of long-term financial planning.
Final thoughts
The estimated £31 billion sitting in lost or forgotten pension pots is a reminder that many people could have retirement savings they no longer remember. While the money hasn’t vanished, it may take some effort to reconnect with the pension provider and confirm what you’re entitled to.
If you’ve changed jobs several times or haven’t reviewed your retirement savings for a while, now could be the perfect opportunity to check. You may discover a forgotten pension that helps strengthen your financial future and gives you greater confidence when planning for retirement.
