Only 24% know value of combined pension pot, Prudential
Fears over new generation of lost pensions and abandoned pension pots are set to rise with frequent job switching by younger workers.
Around 16 per cent of workers have lost track of their pension funds after changing jobs, research from Prudential has revealed.
A survey of 2,000 employees found that 76 per cent have no idea of the value of their company pension pots, while the remainder feel “confident” they know the value of their combined pension funds.
The survey also found that 81 per cent of workers failed to actively transfer their previous company pension funds across to their new employers, while another 15 per cent relied on their new employers to make the switch.
Workers aged between 18 and 34 were found to have had an average of three full-time jobs, compared with those aged 55 and over who have had just five jobs in their careers.
Those respondents who did know the value of their combined pension pots said they have built up an overall fund worth £110,207, on average, over their working lives.
However, there is a significant gender gap here as men believe they have built up pension savings totalling £154,094, whereas women estimate they have saved only £50,512.
Stan Russell, retirement expert at Prudential, said: “It is essential for people to understand what type and level of savings they have built up in the past. They must make sure that their previous employers have their most up-to-date personal details and are sending them annual pension statements, so they can keep themselves properly informed.
“Keeping track of pension savings at every age is important but it is even more crucial for younger workers, who are likely to switch jobs more often, to actively manage this process. It’s also important to consider the benefits of transferring previous pension savings into a new employer’s scheme, although seeking advice before making such a big decision is a must.”