How to locate your lost and forgotten pensions (and why it matters)
The Pension Tracing Service estimates there is around £20 billion sitting in lost or forgotten pensions. Learn how to track down your pots and why it matters.
Pensions have been a widely discussed topic in the UK since the 2024 general election.
The Labour Party launched its landmark pension review and the Pension Schemes Bill soon after it was elected in July.
Meanwhile, the party is rumoured to be considering further pension reforms that may be announced in the upcoming Autumn Budget on 30 October.
With all this to think about, you might be wondering where you stand when it comes to your future retirement prospects.
One under-discussed aspect of building pension wealth, however, is the finding and retrieving of lost pension pots.
Research published by Money Week estimates that UK pension holders have around £50 billion sitting in lost or forgotten pots – and if you are one of them, you could be missing out on wealth that rightfully belongs to you. Plus, it’s National Pension Tracing Day on 27 October, providing the perfect reminder to set some time aside and track down your lost pots.
So, whether you’re building wealth pre-retirement or are already retired, find out how to find lost or forgotten pension pots this National Pension Tracing Day.
3 easy ways to find your lost or forgotten pension pots
- Contact your old employer
If you know you were enrolled in a pension during a previous job role, but you can’t find the relevant information needed to retrieve the funds, contacting the employer directly might help.
They could provide:
- The name of the provider
- Your account details.
While it might take a while to compile all your lost or forgotten pensions, if you have several, going to your old employers might help to ensure you gain the correct information.
- Go straight to the provider
You might remember which pension provider(s) you held your pension with, but have lost track of your account details. In this case, going straight to the provider for more information could be the most efficient way of tracking down your pot.
Or, if your employer has pointed you in the direction of the right provider, this might be the next step on your pension tracing journey.
It may help to have the following details ready when you reach out to a provider:
- The year you opened the pension or were enrolled in the scheme by your employer
- The approximate value of the pension, if you have an inkling of what this might be
- Your home address at the time you were last paying into the pension
- Your National Insurance number.
If you never set up an online account with the provider, they may send you a letter and ask for proof of identification. After this, you should be able to set up an account and view the current value of your pension online.
- Use a pension tracing service
If you’re truly in the dark about previous pensions you held, you can use a free pension tracing service to help you.
The government has its own pension tracing system used widely by UK consumers. This service might be able to locate providers or accounts you hold pensions with, enabling you to retrieve the funds as you see fit.
- Decide what to do with small or underperforming pension pots
Once you have access to your lost pensions, your next steps might be:
- Requesting a transfer into a larger pot, perhaps your existing workplace pension or self-invested personal pension (SIPP)
- Withdrawing the funds from your smaller pots, if you are age 55 or above
- Speaking to your Kellands financial planner about the appropriate actions for your overall financial plan.
Remember: if you empty an old pension pot by transferring the funds to another scheme, you may lose any benefits linked to the original scheme, including insurance in some cases. So, it’s important to read the specific provider’s terms and conditions before you request a transfer, along with speaking to an expert.
Why retrieving lost pensions matters more than ever as 2024 draws to a close
If you’re building pension wealth in the run-up to retirement, locating any dormant pots could bring you one step closer to achieving your goals.
This is especially important ahead of several shifts in the retirement landscape, both positive and negative, which may affect retirees.
Labour’s Pension Schemes Bill and review are set to boost retirees’ pension savings
As you read earlier, the Labour Party has revealed plans to build value for money for pension investors, both through its new Pension Schemes Bill and overall review.
Among many factors, the Bill aims to bring in automatic consolidation of small pots worth less than £1,000. It would also require providers to prove they are offering value for money to investors and may prompt the closing of loss-making schemes.
These plans are designed to boost the average saver’s pot by £11,000.
The chancellor may reduce pension tax relief for high earners, among other measures, in her Autumn Budget
The hotly anticipated Autumn Budget will be delivered on 30 October by chancellor Rachel Reeves.
While no changes are set in stone just yet, forecasters predict that Reeves may cut pension tax relief for higher- and additional-rate taxpayers. What’s more, some anticipate a tightening of Inheritance Tax (IHT) rules around pensions – at the time of writing, your pension does not usually form part of your estate for IHT purposes.
There is no need to worry, though. Speaking to your Kellands financial planner may put your mind at ease if or when any changes come into place.
Get in touch today to discuss your retirement goals
Retirement is a hard-earned chapter that is meant to be enjoyed. If you are concerned about your retirement position or simply want to learn more about building pension wealth, get in touch today.
Email us at hale@kelland.co.uk, or call 0161 929 8838.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.