Pension tracing service launched: How to find and consolidate your pots – full details
Pension pots can be built up automatically in the current working environment, as employers are required to place all eligible employees into a workplace pension scheme. This scheme is then contributed to by both the worker and employer in a bid to prepare people for a healthy retirement.
However, modern employees often jump from job to job throughout their careers and as such, many pots can be set up and lost track of over time.
To help with this issue, the Government is working on a pensions dashboard tool which will allow users to track and manage all of their pots in a single location.
On top of this, pension tracking efforts are also being worked on within the private sector with Penfold, the “challenger” company launched in 2019, recently releasing a “Find my Pension” service.
This consolidation tool allows users to track down lost pension pots by simply entering a company name.
READ MORE: Bank announces ‘significant rate rise’ on savings account
Pete Hykin, the co-founder of Penfold, commented on these developments.
Mr Hykin said: “Traditional pension companies administer their schemes in a way which have become manual, inefficient and expensive. To add to this, we know the average person changes jobs 17 times in their lifetimes – which can equal 17 pension pots held by different providers with challenging and unfathomable ways of accessing them.
“Our mission is to modernise and simplify the pensions industry – making it easy for our customers to track and consolidate their pension pots with a few clicks of a button and be as accessible and transparent as their online banking apps.”
Chris Eastwood, another co-founder of Penfold, also said: “Penfold’s goal is to remove the pain from pension saving, so people can stop worrying about the future and get back to enjoying today. From early on we knew the only way to truly do that was to rebuild how pensions were operated from the ground up. We are rapidly transforming the pension experience.”
“I decided to open a Penfold account so I could consolidate all of the pots. As I opened my pension, Penfold launched the Find my Pension service, so it was great timing.”
Mr Rodger concluded by examining how the consolidation process, which may be dreaded by many, was much smoother than expected: “It was actually really easy – all you need is the name of your employer and Penfold can do the rest. I was lucky in that I am of the ‘just before the internet age’, so I had kept all my paperwork and had access to policy numbers, but if you don’t have that, or get a number wrong then Penfold steps in to help.
“Once I had given all my details to Penfold, I didn’t have to do anything else – they contacted my previous pension providers on my behalf, so the whole process was really easy. I don’t think the individual pots were larger than expected – but it was the cumulative sum that opened my eyes – it was a few thousand pounds.
“The cliche of ‘it all adds up’ really rings true when it comes to scattered pensions. I was aware of the rough values sitting with my three previous pensions but seeing it totalled up, added to my Penfold pot and gathering interest as a lump-sum turned me into a complete ‘consolidate your pensions now’ advocate!”
For all the latest Business News Click Here