One in four adults don’t know who their current pension provider is, while a similar proportion were unaware that changing jobs could result in multiple pensions pots, according to new research.
The research from Standard Life, found that two-thirds of those surveyed (66 per cent) had never tried to track down lost pension pots — despite the average forgotten pot being worth £9,470.
The research found that only one in three people (30 per cent) said they have kept track of pensions from previous employers, suggesting many savers may be missing out on retirement income from lost workplace pensions.
This problem is particularly acute among older savers, who are statistically less likely to consolidate pension pots. Almost three-quarters of the ‘silent generation’ (73 per cent), and two-thirds of baby boomers (65 per cent) and Gen X (66 per cent), have never combined their pots, according to the data from Standard Life.
The pension provider says that while the figures are lower, the problem still persists among younger cohorts, with half of millennials (50 per cent) and 55 per cent of Gen Z failing to consolidate pensions.
Common reasons given for this failure include not knowing how to start the process (31 per cent), a lack of time (11 per cent), the perceived hassle (10 per cent) or simply believing it’s not worth the effort (17 per cent).
Standard Life retirement and savings director Mike Ambery warns that millions risk losing out as a result.. “With multiple job moves now the norm, it’s easy for pension pots to slip through the cracks. Even if consolidation isn’t right for everyone, knowing where your pensions are and keeping records can make a real difference.”
Ambery says consolidation can help many savers by offering a clearer overview of their total retirement savings and, in some cases, lower charges — but he cautions that some older pots may include valuable guarantees that could be lost if transferred.
He adds: “Each individual pot might not seem significant, but together they can provide a substantial boost to retirement income. Finding and managing lost pensions can make a meaningful difference to people’s later-life finances.”
Government initiatives such as pensions dashboards and automatic small-pot consolidation are expected to make the process easier in future, but with implementation timelines still uncertain, Ambery urges savers to act now. “Help is on the way, but people shouldn’t wait — taking control today could prevent valuable savings from going to waste,” he says.
