The Lost Pension Pot Problem  - Mintago

It’s no secret that lost pensions are becoming more and more of a problem. In fact, research shows that more than 1 in 5 employees believe they may have a lost pension, with the total number of lost pots (currently 4.8 million in the UK) likely to increase even further due to frequent job switching becoming more common. Staggeringly, the total value of misplaced retirement savings is likely to exceed £50 billion.

Why are pensions being lost?

Pensions can get lost for many reasons, but here are some of the most common:

• Employees are frequently switching jobs (the average employee has 12 different jobs in their lifetime). 
• The government’s auto-enrolment scheme means that employees accumulate multiple pension pots, and these get left behind with previous employers. 
• Employees change their address and don’t update this with their pension provider. 

Ultimately, with so much paperwork to keep track of, it’s no wonder employees lose track of their often multiple pension pots. See below the average number of pension pots per age group. 

How can employees find lost pensions?

Thankfully all is not lost! The UK government is currently considering several options to help solve this problem, including promoting the use of pension dashboards.

There are options available to employees when it comes to tracking down lost pensions. Here are some of the most popular:

• Employees can contact their previous pension providers and request an account statement or access to their online account.
• Employees can contact their previous employers to ask for details of the pension provider used.
• Employees can use the government’s free Pension Tracing Service, which allows them to search for previous employers to find past pension providers’ names and contact details. 

However, the above options are often time-consuming, as even if employees do manage to find the details of previous pension providers, they will have to contact them themselves. Time is precious, and people with already busy lives may not have the time needed to take action.

Is there an easier way?

Another option is the Mintago Pension Finder service, available for free to employees who have access to Mintago through their employer. Here are some details about this service:

• Mintago’s pension hunting team only needs minimal information from employees to start tracking down their lost pensions.
• The team can provide detailed information such as the value of an employee’s lost pots. 
• The team takes care of the hard work, retrieving any lost pots and automatically adding these to employees’ Mintago Pension Dashboard.
• Employees can choose to consolidate their pension pots via their Pension Dashboard for ease and convenience. 
• Employees receive dedicated support and are kept informed throughout the pension-hunting process.

Want to know more?

Book a call with a member of the team to learn more about how Mintago can support your employees in tracing their lost pensions.

Or read our blog about How to choose the right pension-hunting tool for your employees.