Employers urged to help their people track down lost pensions

Employers urged to help their people track down lost pensions as latest report reveals unclaimed total rises to £31 billion.

• There are now an estimated 3.3 million lost pots, containing £31.1 billion worth of assets, according to the latest report on lost pension pots from the Pensions Policy Institute*
• The value of lost pensions in the UK has risen by 60% since 2018
• 3 million pension pots are now considered lost, at an average sum of £9,470
• The average size of a lost pot is highest among the 55-75 age group, at £13,620
• Updated employer toolkit free to use to help you support your people’s search.
• Missing money could be vital as cost of living crisis continues to impact everyone’s finances.
• Sunday 27th October this year’s pension tracing day.

With the publication of the Pensions Policy Institute’s 2024 Lost Pensions Survey findings, the team behind National Pension Tracing Day (NPTD), is urging employers to play their part in helping their people track down the 3.3 million mislaid or overlooked pots.

Now in its fourth year, NTPD serves as a timely reminder for individuals to log onto one of the many free pension finding tools available, such as National Pension Tracing Day – 27th October 2024, to start the process.

Employers have a key role to play in helping employees to take that first step as employees typically turn to their employer when it comes to pension questions. Because of that, Secondsight has made it even easier for HR teams to help their people find any pots with which they may have lost contact.

An estimated one in 20 people may be affected to the tune of £9,470 each, adding up to over £31 billion waiting to be claimed, according to the 2024 PPI report.

Secondsight is asking everyone this Sunday to spend the ‘extra’ hour when the clocks go back to start the search with the tracing tools available on its updated website. In addition, Secondsight is urging every employer to ensure they signpost their people to the free search tools throughout the year and it has revitalised the resources companies can share with their staff to encourage them to not only search but to do so with confidence.

Secondsight Managing Director, Employee Benefits Consulting, Gavin Zaprzala-Banks, said: “Sadly, forgotten pensions are nothing new – providers have always spent considerable time and money to reconnect people with the savings they’ve left behind.

“So four years ago, we created NPTD to go a step further by highlighting what everyone can do to crack this stubborn problem. In particular, we provide the tools to employers to empower their people to turn detective and track down any pensions gathering dust.

“Over the years, we’re delighted at the number of organisations who have helped their employees make sense of this challenge. More people switch jobs more often and move home more frequently. We want to make sure they take everything they’ve saved with them.”

Gavin added that everyone can make a start straight away, and uncovering an overlooked pension could make a vital difference in retirement, especially as the cost of living crisis continues.

Plus, the success of auto-enrolment could mean that, conversely, many more people are unaware they even have a pension to claim in the first place.

The non-profit initiative, originally founded by Punter Southall, is now being led by Secondsight. This year, the initiative continues to receive support from Aegon, Aviva, Legal & General Investment Management, Hargreaves Lansdown,  Royal London, Scottish Widows, Smart Pension, Standard Life, and The People’s Pension.