- New figures revealed that the total value of lost pension pots has jumped by £7.2 billion over the last four years, from £19.4 billion in 2018 to £26.6 billion in 2022.
- Over 2.8 million pension pots are now considered lost, an increase of 75% over the last four years.
- The average lost pot is worth £9,470, which could make a “real difference” to people’s retirement.
- Problems occur when people forget about pots from previous jobs, change name or move house.
- The pandemic is likely to have spurred an acceleration in career moves over the last few years, driving a surge in the value of lost pensions. There is also some evidence that more people have been moving house since 2018, which is another key reason why people lose touch with their pensions.
- The average lost pension is estimated to be worth well over £9,000, not the sort of money you would normally find down the back of the sofa.
- Ensuring pensions are easy to track and combine is absolutely crucial if we are to ensure more people make the most of their hard earned retirement pot.
- The average amount in lost pensions may not sound like a lot but over time investment growth can add up to a tidy sum and if you lose track of more than one pension it can have a major impact on retirement planning decisions. Finding a lost pension could be the difference between struggling to make ends meet or being a bit more comfortable in retirement.
If you need help tracking down a lost pension, connect to a Financial Adviser who can help.
