Lost pensions: Is there £9,500 with your name on it?

“Reunited and it feels so good...” So sang RnB duo Peaches and Herb on their 1978s hit. This could be you and your lost pension pot – or rather, pots.

That’s because from the age of 16, 18 or 21, the majority of us enter the workplace and we’re then there into our sixties or longer. How many jobs have you had to date?

If I look back at my own work history, I can count at least eight jobs where I’ve had a workplace pension. And within that same time period, I’ve moved house five times. Did I update my workplace pension providers with every house move? No, reader, I did not.

You can see how it’s all too easy to build up a number of lost or forgotten workplace pensions over the course of your career.

But these unclaimed pensions can – and do – add up. The average size of a lost pension pot is £9,470, according to new research by the Pensions Policy Institute (PPI). And this sum rises to £13,620 for the 55-75 age group.

The PPI estimates there are almost 3.3 million pension pots unclaimed, containing £31.1 billion worth of assets.

The combination of people switching jobs more often – plus the introduction of workplace pension auto-enrolment – has led to this increase in the number of unclaimed pension pots.

Sunday 27 October, 2024, marks the fourth annual National Pension Tracing Day. It’s a day created by the pensions industry to encourage people to locate and trace their pension funds.

Now, I want to be honest with you, you are very unlikely to trace your lost pension or pensions in a day. So know that and don’t set yourself up for a fail. However, you can absolutely get started. Here’s how:

Not saving for retirement is one of people’s biggest financial regrets – and an increasing number of my money coaching clients are working with me to sort out their pensions. It’s on people’s minds for good reason.

One client, aged 49, has tracked down thousands of pounds across three workplace pensions since the start of summer.

She told me: “I’ve been wanting to sort out my pensions for some time now. It was about this time last year that it came to the forefront for me but with work and other commitments, it was this summer before I started to look at my pensions.

“It’s taken time but that’s okay. I’m taking my head out of the sand, getting more real with my numbers and learning as I go. It’s exciting and it’s empowering and every bit adds up.

“The point of me doing this work is to get up-to-date on everything, to know where my money is and understand how much I’ve got. This then helps me make informed decisions.

“I realised that no-one can do this work for me. I worked in those jobs, it’s my National Insurance number, my personal details. I can’t delegate it. I have to do it myself. I feel in control and it’s helping me feel empowered about my personal finances.

“All the work on pensions has helped get me focused to set up my self-employed pension. This is an incentive to bring in more money to my business and a nice goal to have. I’m building my future and taking care of future me.”

You’ll find more information on the National Pension Tracing Day website: https://nationalpensiontracingday.co.uk.

Talia Loderick is a money coach who helps people to understand and take control of their finances