Millions Lose Track Of Their Pension Savings

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Seven million retirement savers have lost track of at least some of their pension cash, according to new research.

Although two-thirds (64%) of savers have more than one pension, more than one in five (22%) have lost the details of at least one of the pots.

And nearly one in three (30%) have no idea how much their retirement savings are worth.

The figures come from a survey of 909 retirement savers asked about their pension habits by financial provider Aegon.

The firm’s head of pensions Kate Smith said the figures were a worry for many savers.

Online pension dashboard

“It’s hard to plan for retirement without a full view of your savings and an understanding of what your state pension entitlement is likely to be,” she said.

“So, it’s concerning that the number of people who have lost track of their pensions has increased slightly.

“Without the bigger picture, people might be setting themselves up for a retirement fall without a clear idea of what their savings are worth. Nowadays, most jobs come with a pension and, as people frequently change jobs, it’s all too easy to lose track of your pensions, especially if they are small.”

The government has suggested an online pension dashboard that collects information about all the funds a saver has would solve the problem.

The dashboard would include an ‘emergency’ button that allows savers to consolidate all their savings with a single provider in one fund.

Tracing a lost pension

The solution was popular with 27% of savers, who agreed they would do so even if consolidation did not come with financial advantages.

But 46% frowned on having all their investments in one fund in case the provider faced financial problems, while another 27% would not pay for financial advice and a further 27% did not know if consolidating their pensions was worthwhile.

Smith explained consolidation might be right for everyone, but said it may help keep track of auto-enrolment pots where savers regularly change jobs.

For more information about tracing a lost pension, try the government’s free tracking service.

The service will find the contact details of workplace and personal pensions, but will not confirm the value of a pension.

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