The issue of lost pensions will become a “national crisis” in the coming years with £50billion in retirement savings already going unclaimed, a group has warned.
Research has found there were 4.8 million pension pots considered ‘lost’ among the UK population in 2023.
Almost one in 10 workers thinking they have a lost pension pot worth more than £10,000, according to the study by the Centre for Economics and Business Research (CEBR), carried out on behalf of PensionBee.
Becky O’Connor, director of Public Affairs at PensionBee, said: “The amount of money lost track of in old pensions is already eye-watering, with more than £50billion already at risk of being left behind, but is set to reach national crisis levels over the coming years, as the number of pots accumulated through work rises and with it, the number of lost pensions.
“This research suggests the problem of lost pots is growing more urgent every year. The Government is working on a number of solutions to help solve it, including pension dashboards and new ‘pot for life’ proposals.”
The pot for life would allow a person to instruct their employer to pay their contributions into an existing pension pot.
Ms O’Connor urged pension savers to keep track of their retirement funds. She said: “For anyone who loses track of pensions, the result can, unfortunately, be a poorer retirement.
“It’s important to keep track of old paperwork, employer and pension provider names and policy numbers and if you would prefer to keep pensions together, consider consolidating them in one place.”
The Government website has a tool you can use to track down a lost pension. The Pension Tracing Service can also help find details of a lost pot.
The youngest members of today’s workforce are expected to accrue an average of five pension pots by the age of 68. But some workers can end up with as many as 20 different pots to keep track of.
Christopher Breen, head of Economic Insight at CEBR, commented: “Younger people are moving jobs more frequently than was the case for previous generations.
“While people tend to switch employers less frequently as they get older, this will still lead to a higher number of pensions being accrued. This is before accounting for the role of auto-enrolment.
“Given this trend, it’s important that the government provides the necessary support and guidance for people to manage their pensions efficiently.
“With a rapidly ageing population, a healthy private pension system is vital for the long-term sustainability of public finances.”
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