Britons over-55 are warmed they may have £13,620 sitting in a lost pension pot.
A staggering £31.1billion is estimated to be lying unclaimed in inactive or lost pension pots across the UK, new research shows.
With 3.29 million pension pots now considered lost, containing an average sum of £9,468.93, it’s clear that many Britons may be missing out on substantial retirement funds. This rises to £13,620 among people aged 55 to 75, figures show.
The total value of lost pension pots has surged by nearly £12billion since 2018, highlighting the growing scale of this, research by the Pensions Policy Institute for the Pension Attention campaign revealed.
The study explained that as retirement approaches, it’s crucial to track down these missing funds to ensure a more comfortable future.
The increasing number of lost pensions is attributed to a combination of factors. People switching jobs more frequently and the introduction of automatic enrolment into workplace pensions have contributed to the rise in misplaced retirement funds.
The average lost pension pot is worth £9,000
GETTY
The Pensions Policy Institute (PPI) defines lost pots as those managed by providers unable to contact the owner. This could be due to a lack of communication or outdated contact details.
Chris Blackwood, spokesperson for the Pension Attention campaign, emphasised the importance of tracking down these lost funds.
He said: “If you can do one thing today, visit pensionattention.co.uk and use the pension tracing tools to find any lost pension pots.
“It only takes a few clicks, and you could substantially add to your pot. Additionally, you could also retrace your career steps, check old papers, look for any gaps in your pension history, and contact your provider to update your contact details.”
The UK Government’s Pension Tracing Service is also available to help individuals locate missing pension pots. Additionally, people can check with former employers or log into pension provider websites and apps to track down their lost funds.
The Pension Attention campaign, coordinated by the Association of British Insurers (ABI) and the Pensions and Lifetime Savings Association (PLSA), aims to raise awareness about lost pensions.
With National Pension Tracing Day approaching on Sunday, October 27, the pensions industry is encouraging savers to take action.
LATEST DEVELOPMENTS:
.
Blackwood suggested retracing career steps, checking old papers, and looking for gaps in pension history. Updating contact details with pension providers is also crucial.
The PLSA website offers guidance on whether individuals are on track for their expected retirement income.
They have developed retirement living standards to indicate what may be affordable in later life.
By taking these steps, Britons can potentially recover substantial sums to boost their retirement savings.
With the average lost pot for those aged 55-75 worth £13,620, tracking down these funds could make a significant difference to one’s retirement lifestyle.