Research by the Pensions Policy Institute (PPI) estimates that there could be over £19 billion in ‘lost’ pension pots. That’s the equivalent of 1.6 million pension pots, worth around £13,000 each. Based on current trends, the DWP predicts that there could be as many as 50 million dormant and lost pension pots by 2050, indicating the situation is only set to get worse. That’s why we created National Pension Tracing Day (NPTD) to help people find old pensions they may have forgotten about. We are delighted that four of the largest pension providers in the UK - Aegon, Legal & General, Scottish Widows and Standard Life - are backing this campaign.
Taking place every year on the Sunday the clocks go back, we’ll be encouraging everyone to use the extra hour to start tracing their lost pensions. This year NPTD will be on Sunday 31st October.
There are many reasons pensions might get lost. Research has found around two-thirds of people in the UK have several pension pots, but only 1 in 25 people consider telling their pension provider their new address when they move home. Another factor could be changing jobs. People might not realise they had a pension scheme in their old job, or their old workplace scheme could have moved, closed or changed names. NPTD aims to make people feel more informed and empowered in knowing how to trace lost pensions and where to go if they need help, whilst raising awareness of the importance of keeping pension information up to date so pension pots are never lost again.
We hope that employers will encourage their employees to join our ‘Great Pension Treasure Hunt’ to help them find any lost pension pots. It can be daunting knowing where to start when finding a lost pension pot. Our dedicated resource centre has all the information an individual needs to track down any lost pensions. It offers step-by-step, simple guidance and points individuals towards sources of help, revealing common pitfalls to watch out for too. It includes:
💡 Useful pension tracing resources ✔️ A detailed checklist to help every step of the way ⚠️ Pension scams info and what to watch out for 💰 What to do once a missing pension pot has been found
To help employers support their employees, we have also pulled together a range of materials designed to educate employees on NPTD and promote the NPTD website, using a multi-channel approach to suit learning needs. The suite of communications can be used as a whole or individually, so can be incorporated into an employer’s own communications if preferable.
There’s no cost at all for any of this collateral; we have launched this initiative as part of our corporate and social responsibility to help ensure that hundreds, if not thousands, of people have the right support to improve their retirement prospects.
Lost and forgotten pots can make all the difference, particularly as we see such a significant number of people reaching retirement without adequate pension provision. If you would like more information about using our resources to help your employees reconnect with any lost pensions, please get in touch with your PS Aspire consultant, or alternatively contact our communications expert at johanna.nelson@psaspire.com.