New research has identified a whopping £31 billion in ‘lost’ pension pots. If you are retirement planning in Shropshire, there are new tools available to help you find any missing money.
This summer, leading UK pension provider Aegon launched a new workplace-pension app called Mylo, which is designed to track down lost pots. The application was developed in conjunction with fintech company Raindrop. Likened to a digital bloodhound, the app has to date uncovered around 3,300 missing pots and an estimated £36 million in forgotten savings. That works out at around £11,000 per pot.
This will be welcome news for absent-minded savers or those who spent their working lives switching between workplaces and pension schemes, and subsequently lost track. If this sounds like you, you wouldn’t be alone. Average workers in the UK now change jobs every five years. It can be easy to lose sight of what has accumulated over that period. By the time retirement arrives, there might be five or six different pensions lying forgotten and depreciating in value due to inflation. The Pensions Policy Institute has calculated that there might be 3.3 million such pots up for grabs.
Sleuthing apps can, therefore, help people find money they didn’t know they even had, akin to finding cash in the back of a sofa, albeit in greater quantity. Aegon’s app has been rolled out to customers across the UK. With younger Brits often still hesitant about retirement planning, apps are an innovative way of reaching tech-savvy people and engaging them with smarter methods of pension management.
