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Could you name every company pension you’ve ever paid into?
If you’ve had a few jobs over the years, the honest answer is probably no. But a forgotten pension is still your money; it’s just sitting somewhere, growing (or not), waiting for you to claim it.
According to Martin Lewis, the average UK worker could be missing out on an average of £19,600 in lost pensions. Could you afford to miss out on almost £20k of your own money?
This Pensions Awareness Week, we want to help you track down any pensions you may have lost touch with. It’s simpler than you might think, and it could be worth thousands of pounds to you.
Think of an old pension a bit like an old mobile phone contract. If you signed up 15 or 20 years ago and never switched, it’s probably clunky, outdated, and costing you more than it should.
Older pension schemes (especially ones tied to employers you’ve long since left) are often what’s known as “closed” schemes. Nobody’s actively managing them for optimal performance anymore, because the provider isn’t trying to win new business from you.
And that’s your money, just sat there, coming with charges far higher than what you’d pay in a modern Workplace Pension.
Only three things will determine how comfortable your retirement will be:
If an old, forgotten pension is charging you several times more than a modern scheme for no extra benefit, that’s money secretly draining out of your retirement pot every single year.
The prospect of hunting down every lost pension scheme might seem daunting, but it’s worth the time, and your future self will thank you.
Start by writing down everywhere you’ve worked, even short stints or jobs from decades ago. For each one, ask whether you had a Workplace Pension there; and if you’re not sure, add it to the list anyway rather than assume.
The only employers you can safely rule out are ones where you’re certain you either never had a pension set up, or you already received your contributions back as a refund (which sometimes happened automatically if you left a job quickly, particularly before the rules changed in April 1988).
Don’t forget any personal pensions you may have set up yourself outside of work, too.
Next, you need the name of the pension provider for each entry on your list. A few ways to jog your memory:
If your old employer has since gone out of business, their pension scheme may have been picked up by the Pension Protection Fund, who keep a public list of schemes they now run.
Once you know who the provider is (or even just the name of your old employer’s scheme), the government-run Pension Tracing Service can help you find up-to-date contact details, either online or by phone, for free.
If you’re struggling, the Association of British Insurers also keeps a directory that can help if your provider has changed its name, been taken over, or merged with another company.
Once you have contact details, reach out to the provider directly. Be ready to share:
If they find a match, it’s worth double-checking they have your current contact details on file, that way you’ll receive annual statements going forward and won’t lose touch again.
Finding an old pension is only half the job. Once you know what you’ve got, it’s worth comparing it against your current Workplace Pension (reviewing any charges, scheme flexibility, and how it’s being managed) so you can decide what makes sense for you. Whether that’s consolidating everything into one pot, or a different course of action.
Retirement might feel a long way off, which makes it tempting to put this on the “someday” pile. But an old pension is still your money, and every year it sits in a high-charge, unmanaged scheme is another year of it not working as hard for you as it could be.
This Pensions Awareness Week, take some time to make your list and start finding your funds. Future You will be glad you did!
This article is provided for general information only and does not constitute financial advice. If you’re considering what to do with an old Workplace Pension, speak to a regulated financial adviser before making any decisions.
