Lost Pensions in the UK
Recent research has found that around £37bn in pensions is “lost” in the UK. The same research by Gretel found that 44% of UK adults think they may have a lost pension, but only 13% have begun the process of finding them. But why are so many pensions lost, why is it important to find them again, and how should you go about doing that?
Why are so many pensions lost?
In October 2012, the Pensions Act 2008 introduced workplace pension auto-enrolment. The huge benefit of this is that most UK workers will have a private pension pot at retirement. However due to the auto-enrolment nature of these pensions, and the fact that employee contributions happen before the money reaches the employee’s bank account, many are unaware of the details of their workplace pensions. This can mean employees aren’t aware of their pension provider and don’t know how much they pay in each month. They also may not be aware of how to keep track of their pensions if they move jobs or change their home address.
When changing jobs, it may be possible to transfer your existing pension pot to your new pension provider. This way it remains consolidated and easier to manage. However, many people aren’t aware of this, and their workplace pension is forgotten about. Individuals would normally receive an annual statement about their pension, and this could serve as a reminder. If you have moved house without informing your current and previous pension providers, though, these statements could be sent to the incorrect address. Thus, the pensions remain forgotten about.
Why is it important to locate lost pensions?
The UK economy is in a fragile state. The government is counting the cost of steering the country through the Coronavirus pandemic and has made financial and economic decisions to try and recoup some of this cost. The amount of money available in state pension payments, and indeed retirement age itself, are subject to change. There is no guarantee that the state pension many of us will receive at retirement age will be enough to live on.
If there is a private pension pot with your name on it, this could make all the difference to your retirement. Research by Canada Life found that that 16% of UK adults have tried to find a lost pension. Of the 9% of these that have been successful, the pensions found have been worth an average of more than £6,000! It’s money that you’ve earned, so it is yours to claim!
How to find your lost pensions
With Willday Wealth Management, you’re just three steps away from finding and consolidating your pension. Simply fill our Get Started form here we only need your name, date of birth, address, and National Insurance Number, along with contact details. We’ll then contact over 100 pension providers on your behalf, to find your pensions.
Once we have reviewed the findings and given you feedback, we will invite you to book a free consultation. Here we will discuss consolidating your pensions, allowing us to make sure that your pension is working hard for you and your future. You can read about the advantages and disadvantages of consolidating your pension pots in our blog post, here.
So don’t delay…
Don’t let the £37bn in lost pensions include your retirement fund! Start the process of discovering if you have a lost pension by completing our simple form, and we’ll take it from there!
Did you know: It’s important to note that if a pension pot is left unclaimed six years after its owner reaches retirement age, they will no longer be entitled to it. So don’t leave it too long – find your pension today! Do you have multiple workplace pensions, but aren’t sure they’re working effectively for you? Contact us Client_support@willdaywm.co.uk to book a free consultation today to discuss consolidating your pensions into an effective, managed scheme.
