Many individuals may lose track of their pensions, especially if they frequently change jobs. Research conducted in 2024 by the Pensions Policy Institute (PPI) revealed that an estimated £31.1 billion is currently held in unclaimed or lost pension funds.
John Ferguson, a 32-year-old security worker residing in Edinburgh, discovered £10,000 in missing pension pots by utilizing the Penny app. This app helped him locate seven pension pots, including two that he was unaware of previously. Ferguson mentioned that he anticipates finding two or three more pensions in the future.
Penny’s method involves using your National Insurance number along with any available information about your past employment or pension provider to track down your pension pots. The app also offers the option to consolidate multiple pensions into one account, but certain considerations must be taken into account.
Before transferring your plans, it is essential to check for any fees imposed by your current pension provider and to assess if you might lose benefits such as guaranteed annuity rates or protected tax-free cash. Additionally, understanding the charges associated with your new provider is crucial. Penny, for instance, charges 0.75% annually for its default pension plans. Seeking free pension advice before making significant decisions about your retirement funds is highly recommended.
The government offers a free tool called the Pension Tracing Service, designed to assist individuals in tracking down lost pensions. This service requires you to provide details of your previous employments. However, it only provides contact information for the pension provider without disclosing the investment amount. To obtain fund details, contacting the pension administrator directly is necessary.
Moreover, a new pensions dashboard tool is set to launch this year, enabling individuals to view all their pension information in one place. By October 31, 2026, around 3,000 providers and schemes will be integrated into the dashboard for easy access to pension data.
