Staggeringly, 19% of men admitted to having more than five pensions compared to 9.5% of women. It’s hardly surprising then that more than a third (36.5%) of the 2,000 people asked had simply lost track of their pension pots.
Why do we have so many pensions?
One reason is pension auto-enrolment. It was introduced back in 2012 and it means pretty much what it says. If you’re eligible (check at the Pensions Advisory Service), you’re automatically registered with your employer’s scheme. Coupled with the fact that the typical Brit averages six jobs in their lifetime (and Millennials a whopping 12), it’s easy to see how pensions can be forgotten.
The survey also revealed that people in the North East were the most forgetful when it came to the pensions they had. Londoners shared the title of most forgetful; but with one in five city dwellers having five or more pensions, it’s perhaps justified.
Illustrating that forgetfulness doesn’t just come with age. Nearly half (48%) of under 24s had lost sight of their pensions. That’s more than the 35-44 age group, despite the fact that they have five or more pensions to juggle.
How can I keep track of my pension pots?
For those of us still working, being absent-minded about a pension or two might not be a cause for concern. But it could mean losing out on our hard-earned cash when we retire.
Luckily, the mypensionID team has created an app that lets us bring all of our pensions together in one place. And for 65% of the survey respondents, it’s just the app they’d be likely to use.
Crucially, it’s not the same as consolidating all of your pension pots into one big cauldron. Think of it as a basket containing all of your separate nest eggs.
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For Lisa Lyon, founder of mypensionID, the fact that many of us simply forget what we have was “the very reason” the app was created.
Highlighting the benefits of the app, Lisa says it’s “the quick and easy solution…and brings together all of an individual’s pension pots into one secure place, meaning that the pension holder can ensure that their pension provider always has their correct details.”
Find out more at mypensionID, how it works.
Can I consolidate my pension pots?
If you would find it easier to have all of your pensions together in one pot, you could consolidate them.
If you do, you’ll need to be aware of any transfer costs or exit fees. Also, be mindful of any ongoing management fees.
If it is something you’d like to do, it could be worth speaking to a pensions broker or financial professional. And if you do – check they’re authorised to give you advice and are registered with the Financial Conduct Authority (FCA).
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