How your employees can find their lost pensions and why they should

It’s estimated that around £27 billion currently languishes in “lost” pensions. If your employees have a retirement fund that they’ve forgotten about, or a scheme provider whose details they’ve mislaid, a portion of that money might be theirs.

This 27 October marks National Pension Tracing Day and it’s an annual campaign that Second Sight is very proud to support and sponsor.

Finding their lost pensions reunites your employee with the money they’re entitled to, helping them to live their dream lifestyle after work. It might also be just the push them need to re-engage with their retirement.

Here’s how your employees can search for their lost money, and why they should.

How to find lost pensions: Checklist

As many as 1 in 20 people could have a pension that they don’t know about. So, when the clocks go back this year, we’re encouraging everyone to use their extra hour to search for a lost pension.

Back in October 2022, the Pension Policy Institute reported that unclaimed pension pots amounted to around £26 billion. The two main causes for pensions being lost were changing jobs or moving house and not providing a new address.

In recent years, work patterns have increasingly moved away from the traditional “job for life”, with adults having up to 12 jobs throughout their careers. This might mean 12 pensions and a much greater chance of one slipping the net. But there are steps your employees can take.

We have provided a full National Pension Tracing Day checklist, but here’s a brief rundown of what your employees should do now:

Search their memory

They might’ve had many jobs over a long career. Some of them might’ve been 10, 20, or even 30 years ago. Did any of them have a pension attached?

If the answer might be “yes”, now is the time to find out for sure. They might speak to a partner or former colleague. Discussing their job history might spark a memory.

Find their paperwork

Once they have a rough idea of how many pension pots they should have, locate the paperwork for each.

It’s worth remembering that some providers might’ve changed names or been taken over by other companies. They might need to do some detective work!

Once they have all the paperwork they can find, they can get in touch with the providers to request up-to-date valuations, or even annuity quotations if their retirement is close.

Where there are any gaps in theirpaperwork, they might need to find contact details.

Use the government’s website

They can use the government’s Pension Tracing Service to help them find lost pensions, and contact details for schemes.

To get the most out of the site they will need to provide as much detail as possible, which is where their previous groundwork comes in.

Connect with all their providers and they will have a full picture of their retirement fund and available options.

3 reasons for your employees to find their lost pensions now

• Reduce stress and save time later on

Put the hard work in now and they will have everything in hand well in advance of their retirement date. That leaves them free to sit back and relax.

Not only that, but they will have all the available information they need to make informed choices, without any last-minute stress or panic. This gives them the best chance of making the most suitable decision for them.

• Think about consolidation and save money on high charges

If your employees find they have lots of pensions, some might be smaller than others. They might consider consolidating some of the smaller ones, if not all their pensions, into one pot.

This won’t be the most suitable option for everyone but it does have several advantages.

They will only have one set of contact details to remember and one scheme to stay in touch with. They might also be able to consolidate into the scheme with the lowest management charges, the most appropriate fund choice, or the most flexibility.

• Help them to re-engage with their retirement

They might be busy and working hard, with their pension savings accruing in the background, largely unnoticed.

National Pension Tracing Day, though, is the perfect opportunity for your employees to re-engage with their retirement. Speak to an adviser about their retirement plans to help ensure they remain on track. Find lost pensions, build a full picture of their retirement fund, and they might even find that they have more than they think.

Maybe they can retire earlier than planned or opt for a more expensive lifestyle. They won’t know until they’re sure they have all of the money they are entitled to. And with £26 billion unaccounted for, some of it might well be theirs.

Get in touch

As an employer, ongoing financial education can be beneficial. If you’d like to learn more about how you can support your employees with their financial wellbeing, we can help.

Email info@second-sight.com or call us on 0330 332 7143.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Pension income could also be affected by interest rates at the time benefits are taken.

Pension savings are at risk of being eroded by inflation.

Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.

Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.