When people move jobs, their pensions can often be left behind. It’s thought that 1.6 million pensions have been ‘lost’ in the UK.
As people move from one employer to another, it can be difficult to keep track of your pension pot. With over £19 billion lost in pension pots, we take a look at how this could affect you.
What’s this story about?
The Association of British Insurers (ABI) have estimated that over 1.6 million pension pots worth a total of £19.4 billion are missing – which is the equivalent of £13,000 per pot.
Ian Browne from investment company Quilter says:
“Most people would say that only the rich could mislay £13,000, but it seems anyone can forget when it comes to pensions”
And with more and more people being automatically opted-in to receive a pension, it’s predicted that this problem is only set to grow.
What does this mean for you?
While you’re legally entitled to receive a workplace pension, it’s down to you to keep track of your funds.
Every pension provider is obliged to send you a copy of your annual statement each year, so it’s important to keep track of all of these documents. Having these to hand will mean you’ve got all the right information when it comes to taking your pension out.
Don’t worry though – if you haven’t been keeping up with your paperwork, head over to the Pension Tracing Service on GOV.UK where you can find the contact details for your workplace or personal pension scheme.
Our key tips
To avoid losing your pension funds, it’s worth following these top tips:
- Keep hold of the paperwork – even if you don’t need your pension paperwork soon, it’s certainly worth holding onto
- Track your pension schemes on GOV.UK to help you stay up to date with your funds
- Tell your pension provider if you move so the documentation is being sent to the right address
Disclaimer: All information and links are correct at the time of publishing.