Lost Pensions and Pension Tracing
How many employers have you worked for in your career? One? Two? More? Assuming you worked for the company for long enough, and were eligible to join the pension scheme, you should have at least one set of pension benefits for each employer.
In 2022 the Pensions Policy Institute reported that there is £26.6 BILLION in ‘lost’ or ‘unclaimed’ pension pots in the UK. The number of ‘lost’ pots has increased 73% between 2018 and 2022 and the value in ‘lost’ pots has increased by £7.2 billion. The Pensions Policy Institute is currently conducting its 2024 survey to provide an update on the scale of the problem. It is likely that the problem has got worse rather than better.
If you wrote down a list of all the companies you have worked for in your career, and tried to pair these up with pensions you know about, do you have any gaps? If you do, and particularly if you worked for that company for a while, it is possible you have a ‘lost’ pension and are entitled to share of the £26.6 BILLION in ‘lost’ pots.
Pension Tracing Services
The Government has launched its free “Find a Pension” Service at the following link – Find pension contact details – GOV.UK (www.gov.uk). This service allows you to search for contact information for pension scheme administrators that you can then use to inquire whether you have ‘lost’ pension benefits. Most enquiries can be started with:
- Full Name
- Pre-marital name if applicable
- Date of Birth
- National Insurance Number
If your enquiry is successful, the administrator will conduct further checks to verify your identity before issuing up to date paperwork to inform you of the value of the pension benefits.
As well as the Government service, there are several free-to-use pension provider led tracing services. One such example is Aviva’s Pension Tracing Service* which has launched in recent months. Their service is designed to reunite you with lost pensions and give you basic information about the benefits you have. There is no obligation to use any other Aviva services if the service successfully locates an account.
Be aware that there are also paid-for services that will charge you a fee for conducing Pension Tracing on your behalf. The fee may be payable even if no pensions are identified. It is not necessary to pay a fee for Pension Tracing.
Non-Pension Tracing Services
Lost pensions are the headline, but there is also significant value in non-pension investment accounts and cash accounts, which are deemed ‘lost’. Several online services have been launched in recent years to help reunite people with their savings. Gretel** is an example of an online service that aims to locate ‘lost’ accounts and provide users with contact information so they can be reunited with their accounts.
Your Retirement Planning
Finding forgotten about or lost accounts can have a significant impact on your retirement planning:
- You might be able to retire earlier if you have a bigger pension pot to support you through retirement
- You might be able to retire when you originally planned to, but on a higher income
- You might be able to afford that dream holiday or once in a lifetime experience
- You might be able to support your family in taking the next steps in their own lives
In any case, you cannot afford to make sure you have accurate and up-to-date records of your pension benefits.
Next Steps
- Make a list of all your previous employers
- Pair up your employers to pension schemes you know about
- Highlight any gaps in your pairs
- Use a Pension Tracing Service to find out who to contact to see if you have a ‘lost’ pension
At Carpenter Box Financial Advisers, we can help you review all of your existing pension plans and build a financial plan for your retirement. If you discover a ‘lost’ pension, we can help you to understand how this fits into your wider financial plan and how it could help you retire earlier or wealthier.
If you would like to discuss your retirement planning further, please don’t hesitate to contact us on 01903 534587.
The value of your investments can fall as well as rise and is not guaranteed.
*Aviva’s Pension Tracing Service is an example of a free service. Other similar services are available and Carpenter Box Financial Advisers do not advise on which system should be used.
**Gretel is an example of a free service. Other similar services are available and Carpenter Box Financial Advisers do not advise on which system should be used.