Becky O’Connor of PensionBee, said: “With the average pot size in the UK at around £20,000, losing track of just one pension could make a big difference to your retirement income.”
If you think you’re missing a pension or two, it’s vital to find out before you stop working. This is especially important right now, with the cost of living crisis and higher inflation threatening to spoil retirement plans.
Ms O’Connor added: “As many people face retirement with an income lower than they might have hoped for, it‘s vital to make sure there isn’t a pension somewhere with your name on it that you don’t know about.”
The Government has proposed introducing a “consolidator” system so that pensions of £1,000 or less are automatically scooped up. But until this new scheme materialises it is up to you to take control of your savings.
Now read: How much you should save for a comfortable retirement – and when your cash will run out
What about the Pensions Dashboard?
The Pensions Dashboard is a big government project designed to prevent this “lost pots” problem.
With this portal, UK savers can log in and get an oversight of their entire record, including their state pension.
While this has been heralded as a potential solution, the service is yet to launch. It was originally pencilled in for 2019, but is now not expected to open for business until the second half of 2026.
Tom Selby of AJ Bell, said: “Pension dashboards have the potential to make life much easier for people trying to locate, and ultimately combine, retirement pots built up over the course of their working lives. The decision to delay mandatory connection to dashboards is hugely disappointing and people will now question whether they will ever be created at all.”
So what steps can you take yourself in the meantime?
The good news is that there is plenty you can do to track down old pensions and bring them into one place. Not only will this help you feel more organised and in control, but there are other advantages, too.
How to track down your pensions
If you’re not sure where to find old pensions, the Government’s free Pension Tracing Service is a great place to start.
Ms Haine said: “It’s a straightforward online questionnaire – just four questions and five steps to complete. You will need the names of your former employer or pension provider. Once you’ve given these, the service scans its database and provides contact details.”
It’s then over to you to get in touch with that pension provider to find out how to access your old pension.
