Over the course of a career, many of us change jobs multiple times, moving between employers and pension schemes. It’s easy to lose track of workplace pensions, and with an estimated £19.4 billion sitting in unclaimed UK pension pots, you’re not alone if you’ve forgotten about a pension from years ago.
Finding lost pensions is not only important for your future retirement, but it can also have an impact on your debt management strategy. In this guide, we’ll take you step by step through how to find your lost pensions, offering practical advice that could boost your financial security in the years to come.
What are lost pensions?
A “lost pension” is a pension scheme that a person has stopped contributing to and forgotten about, often after changing jobs. This can happen when you leave an employer without transferring your pension savings, and over time, the details of that pension become difficult to track.
Changes in pension providers, personal circumstances, or simply misplacing documentation can lead to pensions becoming unclaimed. With people working for numerous employers during their careers, it’s not uncommon for pension pots to be overlooked.
What happens to unclaimed lost pensions?
Unclaimed pensions don’t disappear, and the money remains yours. However, if you don’t actively trace your lost pensions, you could miss out on potential retirement income. Pension schemes will continue to invest your money, and it will grow over time. However, if the scheme doesn’t have up-to-date contact information for you, they may be unable to notify you of changes or updates. This can lead to a disconnect between you and your retirement savings, but rest assured, the funds are still yours to claim.
How to trace lost pensions
Finding a lost pension might seem like a daunting task, but it’s actually easier than you think. Here are the steps you can take to reconnect with your pension pots and maximise your retirement savings.
Contact the pension provider
If you can remember which pension provider held your pension, start by contacting them directly. They’ll be able to check their records and confirm whether they hold a pension in your name. It’s helpful to have as much information as possible when reaching out, such as:
- Your National Insurance number
- The dates you were employed by the company associated with the pension
- Your policy or pension number (if you have it)
Pension providers have a legal duty to help you find your pension, so don’t hesitate to get in touch.
Contact former employers
If you can’t remember your pension provider or the scheme itself, your former employers are the next best point of contact. Most employers have records of the pension schemes they operated, and they may be able to point you in the right direction.
Contact the HR departments of your previous employers and provide them with your employment dates and any other relevant details to help them locate your pension records. Remember, the more information you can provide, the easier it will be to track down your lost pensions.
Try Gretel
If you’re struggling to locate your pension through traditional methods, free services like Gretel can be incredibly helpful. Gretel specialises in reconnecting people with lost financial assets, including pensions. It’s a free service that can search across a wide range of pension providers, making it easier to locate any unclaimed funds you might have.
By combining Gretel’s service with the methods mentioned above, you increase our chances of locating all your pensions.
Can I cash in my pension to pay off debt?
A common question many people ask is whether they can cash in their pension to pay off debt. While it is possible to access some of your pension savings from the age of 55 (rising to 57 in 2028), it’s important to think carefully before doing so. Cashing in your pension early can reduce the amount of income you’ll have in retirement, which could affect your financial security later in life.
Additionally, pension withdrawals can be subject to tax charges, which may further reduce the amount available to you.
Given that 1 in 20 people could have a pension they’ve forgotten about, now is the perfect opportunity to join the treasure hunt and see what’s out there. Reconnecting with your pension could make a significant difference to your retirement, especially in challenging financial times.
If you’re struggling with debt, there may be better options available. You can explore different debt solutions that can help manage your financial situation without jeopardising your future. For more information on managing debt while preparing for retirement, read our guide on Retiring With Debt.
While tracking down lost pensions may seem challenging, following the steps outlined in this guide can make the process much easier. By contacting pension providers, former employers, or using services like Gretel, you can ensure that your retirement savings are secure.
To discover more about how to manage your debt and to receive free debt advice, you can visit www.moneyhelper.org.uk or read about options for paying off your debt.
