UK pensioners missing out on £23k
written by Bella Palmer
The survey reveals that young savers are most likely to have a missing pension pot, with 64% of 18-34 year olds saying they have already lost track of one, compared to 40% of 40-54 year olds
A leading online pension provider PensionBee is urging Brits to take stock of their finances following research that shows almost two fifths (37%) think they have a missing pension pot, with one in ten (9%) saying they have lost at least two.
As a result, individuals could be missing out on more than £23,000 in retirement, equalling at least £37 billion in lost or dormant pensions.
To help people get their finances off to good start in 2021 PensionBee has launched “ Do I have a pension? ”, a new online tool to help identify the likelihood of missing pension pots, methods to track them down and tips on how to combine them into one simple online plan.
The survey of 2,000 people reveals that young savers are most likely to have a missing pension pot, with more than three fifths (64%) of 18-34 year olds saying they have already lost track of one, compared to 40% of 40-54 year olds. More than a quarter (27%) also don’t know how many pension pots they have.
The research uncovered an alarming lack of engagement with future finances which could be costly when it comes to planning for retirement. More than four fifths (82%) do not know how much is in their pension pots, with a third (32%) admitting they have never checked the value of their pension at all. A quarter (24%) confess they have ‘no idea’ what their pension will pay out at retirement.
For many, the administrative time and effort needed to keep track of multiple pension pots is considered the main reason for missing savings. A third (29%) of respondents noted that they had lost track of at least one pension pot after changing jobs, and a further 29% had forgotten their online login details. This trend is also apparent in people who track their pension by non-digital means, with over one fifth (22%) of people losing essential paperwork related to their pension.
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