Brits are at risk of losing a staggering amount of cash as millions have lost track of their pension pots, with experts sounding the alarm that job-hopping is causing workers to forget about their hard-earned money.
It’s believed that around three million pension pots, averaging £9,500 each and soaring to £16,000 for those aged between 55 and 75, remain unclaimed. The frequent job changes in today’s workforce mean many overlook the pensions they’ve accumulated, leading to substantial amounts slipping through the cracks.
Families are now being encouraged to get a grip on their pension details from past employment or to hunt them down if necessary. It’s crucial to keep pension providers informed of any changes in personal details, such as new addresses, reports Birmingham Live.
Adam Pope of Spencer Churchill Claims Advice warns of the dire consequences of neglecting to reclaim these funds: “It’s important to highlight the seriousness of the situation. Neglecting to track down unclaimed pensions is about more than just missed opportunities; it’s about the real risk of losing out on a pension. If individuals do not proactively locate these funds, they risk having nothing to rely on during their retirement years.”
The financial expert warned of the dire consequences of unclaimed pensions, stating: “The financial loss resulting from unclaimed pensions extends beyond the amount of money left unclaimed; there’s also the loss of potential growth and investment opportunities. By failing to manage these funds actively, individuals will miss out on the potential returns that could have been generated through investment strategies.”
He further highlighted the risks of not keeping pension details up to date: “The failure to track down unclaimed pensions can lead to significant financial losses for individuals. If someone moves and fails to update their address or reaches retirement age without claiming their pension, the outcomes can be severe.”
Emphasising the silent nature of pensions, he added: “Unlike other financial assets, pensions typically won’t alert you if they remain unclaimed. If proactive steps aren’t taken to find these funds before one’s passing, they could lose their pension completely, amounting to tens or even hundreds of thousands of pounds.”
Mr Pope offered practical advice for those who might be at risk of losing out: “Gather any relevant information – your pension plan numbers, personal details, and National Insurance numbers. Get in touch with previous employers and request details of their pension scheme, file through past contracts and payslips for deductions towards pension contributions. If a previous employer no longer exists, you can still find their pension scheme on Government sites like Companies House.”
He also pointed out helpful resources provided by the government: “Other Government services like the Pension Tracing Service exist specifically to help track down private and workplace pensions. Similarly, for Child Trust Funds, the HMRC website can help you with any unclaimed funds.”
