Millions of people risk missing out on retirement income by losing track of their savings, Standard Life has warned.
One in four (26%) UK adults do not know who their current pension provider is, while two thirds (66%) have never tried to track down lost pension pots, despite the average lost pot being worth £9,470.
Standard Life said the findings expose a “worrying lack of awareness” about what happens to pensions when people change jobs. A quarter (24%) of people do not realise that moving employers can lead to multiple pension pots and fewer than one in three (30%) have kept track of all their pensions from previous jobs.
Meanwhile, the research also found that three in five adults (60%) have never combined their workplace pensions, with this trend particularly pronounced among older groups.
Among the 66% who have never tried to track their pension down, just over a quarter (27%) say they intend to, however 39% have no plans to do so with almost a third (31%) of this cohort admitting they don’t know where to start.
Just under a fifth (17%) believe it’s not worth the effort, while 11% say they don’t have time and 10% feel it’s too much hassle.
Mike Ambery, retirement and savings director at Standard Life, said: “Millions of people risk losing out on valuable retirement savings simply because they’ve lost track of their pensions. While tracking pots down may seem like a hard task, there are simple steps you can take to get your pots in order.
“Even if consolidation isn’t the right option for everyone, simply knowing where your pensions are and keeping a record can make a real difference. Once you have a clear picture, you can understand whether consolidating is appropriate for you – it can simplify your savings, reduce fees in some cases, and give you a better view of your overall retirement income. However, some pots may have valuable guarantees or benefits that could be lost if you move them.
“Each individual pot might not seem significant on its own, but together they can add up to a substantial boost to your retirement income. By finding and managing lost pots, people could significantly improve their retirement lifestyle and make sure no hard-earned savings go to waste.”
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