Pension savers lose billions in lost arrangements – how to make sure you don’t miss out

Pensions often provide people who have contributed years of their lives to work with a comfortable sum to enjoy their retirement. However, it is estimated 1.6 million pension pots worth £20billion have gone unclaimed as retirees fail to update their personal information. Research undertaken by the Association of British Insurers (ABI) estimated the equivalent of nearly £13,000 per pension pot is currently left unclaimed in the UK.

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This is as a result of Britons reluctance to provide new information to pension providers.

The ABI said consumer research suggests only one in 25 people, or four percent of those asked, would consider informing their provider when they move home.

And it is thought on average people move house eight times throughout their lives. 

Pensions can be arranged either privately or through a workplace, but many people find themselves forgetting about these arrangements as they age. 

Changing employer or switching schemes are often the cause of Britons losing track of their pensions.

The Government has predicted there could be as many as 50 million lost and dormant pensions by 2050.

The Pensions Advisory Service has said “prevention is better than cure” when it comes to lost pensions, and encourages savers to keep their pensions paperwork in one place.

Those who have lost pensions, or similar arrangements such as investments, are now being reunited, with information sent to their new address.

More than 375,000 attempts were made to contact customers in 2017.

Yvonne Braun, director of policy, long-term savings and protection at ABI said: “During the lockdown many of us have been focusing on those jobs that never get done, so now is the perfect opportunity to check all your financial information is up to date with the correct address. 

“It is simple to do. All you need is to check the address on your last annual statement or log in to your provider’s website.

“Don’t worry if you don’t have this information, we have a guide on our website to help track your insurance and pension policies and some tips on responding to tracing letters, along with our members’ contact details.

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“Long-term savings providers will continue to work hard to reunite people with their lost money. People deserve all the cash they are entitled to.”

For those who are looking for workplace pensions, the first point of contact is often the Pension Tracing Service.

The database, run by the government, has a list of all workplace pension arrangements to help Britons keep track.

It allows Britons to trace contact details of their own workplace or personal pension, or someone else’s scheme if permission is granted.

It is then the responsibility of the saver to contact the pension administrator to find out whether they have a pension, and what the value of this is. 

The Money Advice Service is also providing Britons with template letters to send to providers for more details on their lost or dormant pensions. 

In 2017, financial services provider Aegon found a fifth of adults in the UK have lost track of one or all of their pension pots. 

Britons can also keep track of State Pension arrangements through the government’s online tool. 

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