It is estimated there are now over three million ‘lost’ pensions, worth over £31 billion, according to recent research from the Pensions Policy Institute (PPI).
The PPI counts a pension as ‘lost’ if the pension’s administrator is unable to contact the owner of that pension. the definition of uncontactable varies between administrators, but it generally involves not having heard from the owner within a certain timeframe or finding out that the owner’s details on file are out of date.
The number of ‘lost’ pensions has more than doubled in the past six years – when the PPI first made counted in 2018, there were 1.62 million; by 2024 the figure was 3.29 million.
It is though that ironically, part of the issue might be the success of automatic enrolment in workplace pensions, introduced 12 years ago. Since then, over 11 million people have been enrolled in workplace pensions, many of whom started retirement saving for the first time in their lives. However, as people move jobs, they are automatically enrolled by their new employer in a new pension scheme under current legislation.
In 2024, the average size of a lost pension is £9,470, the same as in 2022, but down from £12,670 in 2018. Surprisingly, it is those of prime retirement age (55 to 74 years) who have ‘lost’ the largest pension pots, worth on average £13,620. At current annuity rates, that could provide a 65-year-old with a fixed income of about £1,000 a year.
If you think you have ‘lost’ a pension somewhere, the government’s pension-tracing service should be your first point of contact – visit https://www.gov.uk/find-pension-contact-details. You will need either the name of your (previous) employer or your pension provider. If you do find a ‘lost’ pension, it’s worth taking advice on next steps, rather than consolidating it into other plans you have. Just contact us to arrange an appointment with one of our financial advisers.
