Worried about the State Pension? You could have £13,000 in a ‘lost’ pension

There are 1.6m pension accounts that are ‘lost’ in the UK. Is one of them yours?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Would you forget about a bank account that had £13,000 in it? I know I certainly wouldn’t. Yet when it comes to pension savings, it’s a completely different story – people seem to have a very poor memory.

Indeed, according to the Association of British Insurers (ABI), there are around 1.6m pension pots in the UK that are ‘lost.’ These are pension accounts people have lost track of. In total, these lost pensions could be worth around £19.4bn, which equates to £13,000 per plan. “Most people would say that only the rich could mislay £13,000, but it seems anyone can forget when it comes to pensions,” says Ian Browne, pensions expert at Quilter.

So, why is so much pension money lost? And what should you do if you believe you’ve lost track of a pension account? 

Lost pension money

The reason there’s so much lost pension money is related to today’s employment landscape. Gone are the days of working for one company for 30 years and receiving a large pension pot from that company when it comes time to retire.

Today, the average employee will work for over 10 different employers over the course of their career, and possibly even switch occupations entirely multiple times. As a result, people tend to have many different pensions set up. Every time they start a new job, the employer opens a new pension account for them. Because most people generally don’t make retirement planning a priority, they end up losing track of old accounts. 

How to find your lost pension/s

If you’ve had a few different employers over your career and have lost track of some of your old pensions, it’s definitely worth tracking them down. Locating old pension accounts isn’t that hard to do. And you could be pleasantly surprised by how much pension money you have, especially if the money has been growing for a few years.

One of the first things to do if you’re trying to track down old pensions is to dig out any old pension statements. If you have the pension provider’s name and your account number, the task of retrieving your pension pot will be much easier.

However, if you don’t have any old statements, don’t despair. If you type your old employer’s name into the government’s ‘find pension contact details’ service, it will give you the name of the pension provider(s) the employer used. From there, get in touch with the pension provider and update them with your current contact details.

Consolidate old pensions

Once you have tracked down old pensions, it can be a smart idea to consolidate them into one pension account. You can do this easily by opening a Self-Invested Personal Pension (SIPP). With all your pension pots in one place, you’ll have more control over your money. And managing your retirement savings will be much easier as you’ll have a clearer picture of your overall retirement assets.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »