A collective £32 million is being left on the table by pensioners across the UK, due to them failing to consolidate their lost pension pots. The Pensions Policy Institute estimates that around £31.1 billion is currently left unclaimed across private and workplace pensions in the UK.
Why Pensions Go Missing
MoneyFactsCompare expert Leanne Macardle said: "The majority of people no longer have a job for life. In fact, it’s estimated that workers change jobs every five years on average, typically holding nine different jobs in their lifetime, and many will completely change career paths at least once during that time."
"Given that most people will have a new pension pot set up with each new position, it’s little wonder that some can fall off the radar. Paperwork can be lost or funds simply forgotten about over the years, which can be even more likely if you only worked somewhere for a short amount of time."
£9,500 Per Person Missing
She said £9,500 per person is the figure for missing pension pots. She urged people to write down old employers and track down paperwork.
Macardle added: "If you find that you’ve accumulated several different pension pots over the years, you may want to consider consolidating them. Consolidating means you’re bringing all your pensions together in one place, which can make it easier to keep track of them and you could potentially benefit from an investment and cost point of view too. However, it’s important to seek advice to make sure it’s the right decision and that you won’t be missing out on any benefits."
