Millions of people across the UK are being urged to carry out a quick financial check that could uncover thousands of pounds for their retirement. New research has revealed a staggering number of pension pots have been lost or forgotten, with the average value standing at a life-changing sum.
The Scale of the Lost Pension Problem
According to research from the Pensions Policy Institute, there were approximately 3.3 million lost pension pots in the UK last year. Collectively, these forgotten funds are worth an astonishing £31.1 billion. For savers aged between 55 and 75, the average lost pension is valued at £13,620.
A 'lost pot' typically refers to a workplace pension that a person has lost track of, often after changing jobs, moving house, or failing to update their contact details. Some pensions also become lost during scheme transfers.
Why Pensions Disappear and How to Find Them
Lisa Picardo, the chief business officer UK at PensionBee, emphasised the importance of National Pension Tracing Day as a reminder to take action. "Taking just a few minutes to check for old workplace pensions could make a real difference to your retirement outcome," she said. "Many people move jobs several times over their careers, and small pots can easily be forgotten or lost, yet when combined they can add up to a significant sum."
The research also highlighted how these pots can diminish if left unclaimed. For those aged 75 and over, the average value of lost pensions has nearly halved in just three years, dropping from £12,190 in 2022 to £6,540 in 2024.
Taking Control of Your Financial Future
PensionBee is encouraging savers to use free pension tracing services or speak directly to their providers to locate any old pensions. "Consolidating pensions not only makes it easier to manage and engage with your savings, but also helps ensure your hard-earned money continues to grow efficiently," added Ms Picardo. "The sooner you take stock and build a clearer picture of your retirement savings, the better, and the more control you’ll have over your financial future."
Nathan Thompson, director of Mylo at Aegon, highlighted the role of technology in solving this issue. He stated that partnering with specialist fintech, such as Raindrop, has been key to delivering a great customer experience and removing the barriers that have long made tracking down lost pots a difficult and frustrating process.
