The number of people trying to hunt down ‘lost’ pensions has more than tripled over the last decade, according to LV.
Figures derived from a freedom of information request by LV showed that the number of enquiries received by the Pension Tracing Service have increased by almost 250 per cent since 2005.
LV has warned that the number of misplaced pensions could worsen as the workforce becomes increasingly transient.
In February, the government announced that the Pension Tracing Service, which helps people find lost cash, will undergo a major expansion. The Newcastle-based body will triple its staff numbers, taking the total headcount to 49 ahead of April’s pension freedoms.
Last year the service was contacted a record 145,000 times, and in 87 per cent of cases staff successfully managed to put customers back in touch with their lost pension provider.
According to LV, the average worker today can expect to have nine jobs over their lifetime, twice as many as the previous generation, when comparing workers aged 25 years old versus people aged 65 and over.
Today, workers have on average two workplace pensions, but one in five - 20 per cent - have already saved into three or more workplace pensions since entering employment.
LV said that since less than one in three of those workers - 30 per cent - with multiple pots have chosen to combine all their savings into one, it is easy to see how pensions could be forgotten or lost track of over time, with many missing out on retirement income in later life.
Research by LV found that one in ten workers look set to miss out on pension savings because they incorrectly believe that if they leave a job, they can no longer claim the savings they made into there pension whilst at the company.
This statistic stands at 21 per cent for those workers aged 18-34.
From 2016, pension pots will automatically follow workers, however, any funds saved before then may remain where they are and risk being forgotten.
Elsewhere, 41 per cent of workers with multiple pension pots said that they are not aware of the value of their funds. LV said that for these workers, keeping all their pension pots in one place would make it easier for them to keep track of their savings.
John Perks, managing director of LV retirement solutions, said: “With today’s workers likely to take up roles at numerous employers throughout their lives, many could find themselves missing out on a substantial amount of pension savings if they lose track of their pots.
“Although people don’t lose the right to claim their pension if they move jobs, it is worth considering whether it makes sense for them to put all their funds into one place. This removes the chance of someone forgetting or losing track of a pension pot they have saved into and may reduce the charges they pay on their savings.”
ruth.gillbe@ft.com