Tracking down lost pensions can enhance your future.

Here is how to find your missing plans.

Pensions are such a long-term investment that it is easy to lose track of them. This situation is even more common in the case of workplace pensions, where you might change plans several times throughout your career.

Indeed, people misplacing old pensions is common and has contributed to the nearly £20 billion worth of unclaimed pension funds in the UK. If your money is part of this pension black hole, you should do something to reclaim it. After all, you have worked hard to accumulate this money, and it is rightfully yours.

Therefore, keep reading to discover how to track down old pensions and what to do once you have traced them.

Why are so many pensions unclaimed?

As mentioned above, the UK has a £19.4 billion pension black hole, according to the Association of British Insurers. Incredibly, this amount comprises approximately 1.6 million unclaimed pension pots, some of which may be yours.

But how could anyone forget about this money; it equates to around £13,000 per pension pot! Here are a couple of reasons why pensions remain unclaimed:

• Moving home.
• Changing jobs.

Moving home.

One primary reason people lose track of pensions is moving home. Moving involves considerable upheaval and administration, and informing your pension providers about your new address may not be at the top of your priority list.

In fact, ABI research has shown that only 4% of people inform their pension provider about their address change. Unless you are one of this small minority, you could have an unclean pension. 

Most pension providers send out annual statements to your registered address. However, if you have not updated your details, the statements could go to the wrong property. Without receiving your yearly reminder, losing track of your pension details is easy.

Changing jobs.

The next main reason is changing jobs. If you have moved employers throughout your working life, you could well have several workplace pensions. When you change jobs, you stop paying into one scheme and start into your new employer’s scheme. As you’re no longer paying, it is easy to forget these schemes.

How to track down an old pension.

If you lose track of a pension for a considerable time, it can become more difficult to trace. That’s because schemes can become dormant, renamed, or merged with other pension plans. 

To start your search, locate any paperwork you might have regarding your old pension plan. This could include annual statements from your pension provider or any pension details provided by a previous employer. Then, you can contact either your pension provider or your employer.

Contact your pension provider.

When you have sufficient details, you can contact your pension provider. They can provide you with the following information:

• Your pension’s current value.
• Likely retirement income.
• The amount you’ve paid into your pension.

Contact your former employer.

Suppose you can’t find any details about your pension provider. In that case, you may have to contact your former employer to get this information. Although they should provide you with some details about your pension scheme, they will not be able to give any of the information above.

Other ways to track down your pension.

If you are struggling to track down your pension, it may be a good idea to speak with a financial advisor. They can help you gather all the required details or even locate your pensions on your behalf. Look into Portafina.

Once they’ve located them, a financial advisor can analyse your plans and help you decide on your best course of action. For instance, do you leave the funds or switch them to another pension plan?

Another way to trace an old pension provider is by looking at your old payslips. These should detail what you were paying in pension contributions and possibly who the provider was.

You should be aware that all pensions often become part of the Pension Protection Fund. This can make locating them more challenging as they will not be under your provider’s original name. A pension may become part of the PPF if an employer cannot meet their pension obligations.

You’ve located your pensions – what next?

Once you’ve located your old pensions, you will be in a better financial position for your retirement. However, you know I need to decide what to do with them.

As mentioned above, you could leave your funds in the existing pension or transfer them to a new scheme. Exploring your options with a regulated financial advisor is a good idea. They can analyse your pension and its features, then recommend your best course of action.

Conclusion

Losing track of old pensions is easier and more common than you might have thought. Even if there is a small amount of money in a misplaced or lost pension plan, you should still endeavour to reclaim it. Doing so will help you have a more comfortable retirement.

Using a regulated financial advisor to help you can make the process easier. You will also have peace of mind in knowing you are getting sound professional advice.