One in three pension savers are worried they have built up funds they have lost or forgotten about after changing jobs.
Almost 40 per cent of savers have built up multiple pension funds due to switching employers, according to research from provider iSipp, with more than a quarter of the 2,000 adults surveyed finding it difficult to keep track of their retirement savings.
The research found 5.5mn savers have three or more pension pots, while more than 980,000 believe they have five or more.
iSipp’s managing director Hrishi Kulkarni said it can be difficult to keep track of pensions when moving jobs.
This is a widespread issue as only 40 per cent of those surveyed said they always transfer or consolidate funds when they start a new job.
Kulkarni said: “Consolidating pensions gives clients better control and offers full oversight of pension fund performance enabling savers to make more informed decisions while also only having to deal with one pension provider on their retirement."
The firm also pointed out that having multiple funds can mean savers pay more in fees than they need to and spend unnecessary time on administration when it comes to retirement.
“In cases where people have lost or forgotten about savings it can mean losing out on the value of pension saving,” it warned.
According to the research, people in the east of England are the most likely to have multiple pension funds, while Londoners are the most likely to worry about pensions they may have forgotten about.
REGION | How many have multiple pensions | How many worry they have pensions they have forgotten about? |
Scotland | 34% | 36% |
Northern Ireland | 24% | 20% |
North East | 41% | 33% |
North West | 40% | 21% |
Yorkshire & The Humber | 38% | 34% |
East Midlands | 43% | 34% |
West Midlands | 39% | 41% |
Wales | 41% | 20% |
East of England | 44% | 34% |
London | 41% | 49% |
South East | 40% | 30% |
South West | 43% | 23% |
UK | 40% | 33% |
It also found many people do not know the type of pension fund they have, with a fifth (19 per cent) of those surveyed admitting that they do not know whether they have a defined contribution, defined benefit, Sipp, or personal pension.
jane.matthews@ft.com
