£26.6 billion in lost pensions, how much of it is yours?
With the average working lifetime for someone living in the UK being somewhere between 40 to 50 years, it is very likely that over this time, unless we stay with the same employer, individuals will have amassed various pension schemes that they have no idea they had or even know who they are with.
It is estimated that the number of lost pensions has increased by 75% since 2018, with the total value of these being £26.6 billion according to the Pensions Policy Institute.
This recent surge is partly down to the introduction of the workplace pensions regime whereby employees are automatically enrolled into their new employer’s pension scheme and when they leave, they often do so without any record of the scheme they were in.
With pension rules and legislation changing over the years, it may also mean employers often have schemes that provide differing benefits for their staff, making it very difficult for an individual to fully understand just what it all means in terms of the likely benefit to them when they decide to retire.
The government’s Pension Tracing service is a useful way of locating the provider of any pension that was offered to you by a previous employer, and once you know who this is, it may make sense to consider combining them.
However, each scheme is likely to be different in terms of its charging structure, investment strategy and in some cases your scheme may have valuable guarantees that would be lost by transferring to another provider, therefore it is important that you seek advice about whether combining your schemes is suitable for you.
Why not make 2023 the year you get your retirement planning in order and make a start by hunting down your lost pensions.
For more information contact one of our experts on 01228 711888.
David Allen Financial Services (Dalston) Ltd (Registered in England & Wales, Company Number 06966976) has its registered office at Dalmar House, Barras Lane, Dalston, Carlisle CA5 7NY. The company is authorised and regulated by the Financial Conduct Authority. Firm Reference 506138.
