Britons are missing out on billions of pounds worth of pensions and benefits because they’ve forgotten or are unaware they can claim.
Research from asset-hunting service Gretel estimates that a staggering £89billion is currently sitting in lost funds, which includes more than 2.8 million pots.
Adam Pope, pension expert at Spencer Churchill Claims Advice said: “The number of missing pensions, estimated to be over 2.8 million accounts, is concerning, but highlights just how easy it is – between job changes, moving homes, or changes in marital status – to lose track of pension benefits.
“Auto-enrollment policies help set employees up with their pensions but, ironically, are also a big reason for these missing pension pots.”
As more employees are automatically included in pension plans at their various places of work, Mr Pope noted: “They end up with pension holdings in different funds, making it difficult to track them after so many years.”
But it isn’t just pension savers missing out. A staggering £23billion is collectively estimated to be going unclaimed in Department for Work and Pensions (DWP) and HMRC benefits.
Mr Pope said: “The £23billion in unclaimed benefits every year highlights the size of the issue.
“It’s a substantial loss for working taxpayers and their families who are entitled to this important financial help.”
For example, Mr Pope said: “The Child Trust Fund (CTF) is worth about £1.7billion in nearly a million accounts but is largely neglected – a major oversight. Even though the CTF was meant to give young people a financial head start, many beneficiaries don’t even know it was available to them.”
HMRC estimates hundreds of thousands of young people could be owed an average of £2,000 from forgotten CTFs.
Mr Pope continued: “Then there’s the issue of inactive bank accounts and unclaimed premium bond prizes. These add up to more than £79million, highlighting why it’s so important to take action when connecting people with their money.
“Tools like the My Lost Account website offer a centralised way to look for inactive accounts and unclaimed benefits.”
To source lost pensions, people can use tracing services, such as Gretel, within minutes. The Government also offers The Pension Tracing Service, an online tool that’s easy and simple to use.
To track down forgotten Child Trust Funds, people can directly contact their provider (if they know who it is) to access their savings.
If they’re unsure, they can approach HM Revenue and Customs (HMRC) to locate their CTF. They can then explain where the account was originally opened. HMRC also offers a free tool people can use to find a CTF.
For unclaimed benefits, people can click here to access the Turn2us and Policy Practice benefit calculators to check their potential entitlements.
Mr Pope added: “Stronger regulations and industry standards are key to solving the widespread issue of unclaimed funds.
“Banks and financial institutions must take some responsibility for reconnecting people with their money, so they are held accountable for managing inactive accounts and unclaimed benefits.”
