The number of savers looking for lost pension pots has tripled over the last 10 years, research by LV= has revealed.
A freedom of information request submitted to the Department for Work and Pensions shows that the number of enquiries received by the Pensions Tracing Service has risen from 25,544 in 2005 to 88,757 in 2014. This is a 247% increase over the past decade.
In a separate piece of research, LV= surveyed more than 2,000 people and found that:
- the average worker has saved into 2 workplace pension pots
- 20% have saved into 3 separate workplace schemes
- 1 in 3 workers with multiple pensions have chosen to combine them into a single pot.
Some of the employees surveyed (10%) incorrectly believed that they could no longer claim the savings made into a company pension scheme after they left the job. The figure rises to 20% among the 18-34 age group.
John Perks, managing director of LV= Retirement Solutions, said:
“With today’s workers likely to take up roles at numerous employers throughout their lives, many could find themselves missing out on a substantial amount of pension savings if they lose track of their pots.
“Although people don’t lose the right to claim their pension if they move jobs, it is worth considering whether it makes sense for them to put all their funds into one place. This removes the chance of someone forgetting or losing track of a pension pot they have saved into and may reduce the charges they pay on their savings.”