Finding an old pension pot could prove vital for savers who are worried about their money losing value over time, especially with retirement in the coming future. But latest estimates from the Association of British Insurers shows that around 1.6million forgotten pension pots are waiting to be rediscovered.
Collectively, £20billion is stashed away in these accounts – which means that there is an average of £13,000 stashed away.
Millions of savers could be missing out on a lost pension pot worth £13,000 on average.
Romi Savova, CEO of PensionBee explained that planning ahead now could help one uncover a secret stash of cash.
With inflation on the rise, living off state pension can seem more and more daunting, so it is worth checking if there is any additional cash to one’s name.
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She said: “Losing track of these pension savings can have a significant impact in later life, and could see millions of people working for far longer than they would otherwise need to before they can afford tocomfortably retire.”
Ms Savova explained people should gather all of the documents they have for a lost account.
She continued: “You should get annual statements sent by post to your address.
“Keep your address up to date so you’ll get important documents in the future.
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“If you see pension providers you don’t recognise, get in touch with them as they can tell you about any account you may have – and how much is in it.”
She explained the importance of Britons contacting their old employers who will help them find which pension provider they signed up with.
Otherwise, people can use the Government’s free Pension Tracing Service.
The service will tell someone who managed their old company’s scheme and they will then need to contact them.
To avoid losing your pension pot in the first place, Ms Savova said workers should try to consolidate their old workplace pensions every time you switch jobs.
She explained to Express.co.uk that by combining any existing pensions into one personal pension pot, savers can avoid losing track of any hard-earned savings.
This way their personal pension becomes their “home” pot that they’ll keep until retirement, meaning they’ll only ever have to manage this and a current workplace pension.
It will also help people keep track of exactly how much they’ve got tucked away for their retirement – and whether they need to increase how much they’re saving.
She continued: “It’s easy to either forget to update your contact details your provider or lose your providers’ details if you move house or change personal information.
“But savers should keep their pension providers well informed of any personal changes to ensure they avoid losing out on their hard-earned retirement savings.”
Lastly Ms Savova suggested Britons leave their pension invested for just a few years longer as this can dramatically increase a retirement income.
While everyone can legally access their personal and workplace pensions from the age of 55 – or 57 from 2028, it doesn’t mean they always should, particularly if they have other means of income available.
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