Friends Life sees £200m sitting in ‘lost pensions’
The majority of Britons do not know the collective value of their pension pots, while 10 per cent who have workplace pensions have no records of corporate pensions held with former employers, research by Friends Life has found.
The poll of 2000 working UK adults found that 68 per cent did not know how much their pension pots were worth, while 32 per cent were not even sure where their relevant pension paperwork was located.
The survey also found that 30 per cent had pension pots with two or more employers, a further 5 per cent were unsure of how many pots they had, and more than 40 per cent believed they were not paying any charges on their pensions.
Friends Life say a recent consultation by the department for work and pensions estimated there were currently more than 1m small pots in the current system worth up to £200m, with an estimated seven-fold increase in the number of small pension pots expected by 2017 - equating to an extra £74m in pension savings a year potentially being lost.
Colin Williams, managing director of corporate benefits for Friends Life, said: “It is imperative that people are aware of where their money is and what it is doing for them.
“Making sure you are aware of the pensions you have, the amount you and your employer are paying, what charges there are and how much each pension plan is worth is essential for retirement planning.”
Graeme Mitchell, managing director of Scottish Borders-based Lowland Financial, said: “It’s a messy situation. Auto-enrolment is a good thing and should encourage people to save in their pensions much more but the system of moving a small pension pot is still too complicated for individuals and too costly for employers.”