Pensioners have been urged to check whether they’re entitled to a “lost” pot of money. People could be missing out on an average of £9,500. According to Money Saving Expert (MSE), the consumer guidance website established by Martin Lewis, countless Britons may have unclaimed pension funds without realising it.
This happens because over time you may have switched employers, changed pension providers, or because your pension company has merged or undergone rebranding, reports the Manchester Evening News. Roughly £30 billion in total is believed to be unclaimed across the UK.
On its website, MSE stated: “There can’t be many more (potentially) profitable uses of time than to spend a bit of it checking if you’ve any lost pensions – especially for those who worked for lots of different firms over lots of years.
“Astoundingly, more than £30 billion’s worth is thought to have gone astray, worth an average of £9,500 for those that have lost one (though some amounts can be far bigger). This guide explains how to find lost pensions for free, which could seriously bolster your retirement.”
According to MSE, the most common reasons for having mislaid pension funds include:
- Relocating without updating your contact details with your pension provider
- Switching jobs frequently throughout the years
- Your pension provider has merged or undergone rebranding
However, having a job doesn’t automatically mean you have accumulated a pension through your employer.
MSE clarified: “Nowadays, employers must automatically enrol most employees into their workplace pension schemes, so you’re likely to have pensions from more recent jobs – but this wasn’t always the case.
“Pension rules have changed over the years, so whether you built up a pension could depend on when and how long you were working for.”
MSE compiled a basic three-step guide to help you gauge your pension circumstances.
- If you left your job before April 1975, it’s likely that any pension contributions you made were refunded. Additionally, some schemes didn’t require members to make contributions, meaning you wouldn’t be entitled to any pension benefits if this applied.
- If you left your position between April 1975 and April 1988, were over 26 years old, and had completed at least five years of service by the time you left, you may have a preserved pension. This eligibility applies only if you have completed at least two years of service. If you left with fewer than two years of service, your contributions may have been refunded.
- If you left your position after April 1988, you may be eligible for a pension, provided you have completed at least two years of service. If you left your position with less than two years of service, your contributions may have been refunded.
One reader of MSE said that, after following the guidance, he discovered he had an unclaimed pension pot worth over £137,000. He explained that he had stopped paying into the pot in the 90s, and was shocked to hear how large it had grown after finally tracking it down.
To source lost pensions, people can use free tracing services, such as Pension Attention or Gretel, within minutes.
The Government also offers the Pension Tracing Service, an online tool that’s easy and simple to use. You’ll need either the name of the employer or the pension provider. The helpline will then be able to provide contact details so you can get in touch.
