Millions of people missing out on 'lost' savings payouts worth £9,500

23 October 2023 , 10:05

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On average £26.6billion worth of pension savings are considered "lost" (Image: Getty Images)

Nearly three million pension pots with an average of £9,500 sat in them are currently considered "lost" - meaning pensioners are missing out on big savings payouts.

According to research by the Pension Policy Institute last year there were 2.8 million lost pension pots with a total value worth £26.6billion. This equates to around £9,500 sitting in each lost pension pot. The research suggests as many as one in 20 people could have a pension they didn’t know they had.

According to the Pension Policy Institute, the two main reasons people become disconnected from a pension are due to them moving jobs and stopping contributing to the pot, and failing to update addresses after moving house. Studies have shown that only one in 25 people instinctively think to tell their pension provider that they have moved home.

To raise awareness of the issue and to encourage people to trace lost or forgotten pensions, retirement planning business Punter Southall launched National Pension Tracing Day in 2021. The next National Pension Tracing Day is this weekend on October 29.

Have you recently tracked down a lost pension? Let us know: [email protected]

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How to find a lost pension

If you're not sure where to start, the government has a free Pension Tracing Service tool to track down lost pensions. This is a free service which searches a database of more than 300,000 workplace and personal pension schemes.

You will need the name of an employer or a pension provider to use the service and it provides contact details for pension schemes run by employers, as well as for private schemes organised by pension providers.

The site helps you navigate the maze of firms which have changed their name or been taken over by a new company. However, you will only be able to get details of your pension savings once a pension firm has established you are who you say you are and that you do indeed have a pension pot with them.

You should be aware that this service will only tell you the contact details of a provider - not the amount you could have in a pension. You will need to contact the pension administrator yourself to find out if you have any money with them.

You can use the Pension Tracing Service through the GOV.UK website here. You can also call them on 0800 731 019.

You should only use the Government website service because although some firms claim they can help, they charge a fee which you do not need to pay.

Ruby Flanagan