There is a lot to be said about the lost pension pot dilemma. Research shows that there is currently over £19 billion in lost pension pots in the UK. In many cases, these lost pension pots are the result of people changing jobs multiple times and not keeping track of their pension contributions. The average employee changes employers approximately 11 times in their working lives.
Pension hunting technologies exist which can help employees track down these lost pension pots with minimal hassle. Employers should educate their employees about available technologies, where to find them and how they can benefit. Auto-enrolment into workplace pension schemes is not enough to ensure employees’ pension wellbeing is taken care of. Due to the large numbers of unclaimed pensions, without embarking on a search employees will undoubtedly be losing out on money that they have saved towards their retirement.
Lost pension pots
When people change jobs, they often leave behind their pension pot with their previous employer. This can happen for several reasons, such as forgetting to transfer the pension pot or simply not knowing that this is possible. In addition, many people have multiple pension pots from different jobs, making it difficult to keep track of them all. There are services that can help employees track down lost pension pots. In some cases, it may even be possible to recover lost pension pots from previous employers. However, it is essential that employees are aware of the fees charged by some companies, as this reduces the amount of money that ultimately gets added to their retirement fund.
Another reason for lost pension pots is that people move house or change jobs and fail to update their pension details. This means that details of their pension payments go to their previous address or their old employer and they may not even realise that they are missing out on money.
Finally, some people simply don’t know how to go about finding their lost pension pots, so do nothing instead of beginning a search. They may not be aware of the options available to them. As a result, their pension remains lost and unclaimed.
Government pension tracing service
For most people, their pension is one of their most important financial assets. Yet, pension tracing can be a real challenge, particularly if they have had multiple employers throughout their careers. The government pension tracing service is a free tool that can help employees to identify whether they have a lost pension. However, the service cannot recover the lost pension and cannot tell employees the value of their pot.
Using this pension hunting service can also be time-consuming and sometimes unproductive. Employees will have to contact previous employers themselves if they wish to start the process of recovering a lost pension.
Mintago’s pension hunting technology
Mintago’s pension hunting technology can help your employees to find lost pensions and recover money that they have accumulated. The Mintago pension hunters only require minimal information from your employees to start tracking down their lost pensions and can provide information including the value of a lost pot. Furthermore, the pension experts take care of the hard work for users, retrieving lost pots and adding these to your employees’ Mintago pension dashboard. Here they can choose to consolidate pots if they wish for ease of management. Employees can take charge of their pension savings and use their retirement planner to prepare for a comfortable retirement.
Mintago provides assistance and support throughout the pension hunting process, keeping your employees updated with regular communications regarding the status of their hunt.
Helping your employees to find lost pension pots
As the cost of living continues to rise, more and more people are finding it difficult to make ends meet. One way to ensure that your employees have a measure of financial security in retirement is to make sure that they have adequate pension savings. However, many people fail to keep track of their pension pots, and as a result, they can end up losing out on money which is already theirs.
As an employer, you can help your employees by educating them on the importance of pension hunting. Lost pension pots can often be recovered, but it can be a complex and time-consuming process. By helping your employees to understand the steps involved in pension hunting, you can give them the best chance of recovering their lost pension pots.
Employees who are worried about their finances are less productive and more likely to take time off work. This can be a big problem for you as an employer, with high levels of staff absenteeism costing your business money. There are many ways to help employees improve their financial wellbeing, but one of the most important is to offer a good workplace pension scheme. A good workplace pension scheme will give employees peace of mind about their future, and it will also encourage them to stay with your company for longer. Consider matching employee pension contributions to help them make the most of their savings.
Benefits of improving your employee’s financial wellbeing
Improving your employee’s financial wellbeing is beneficial not only for them but for your business and its overall performance. Poor financial wellbeing affects more than 25 million UK employees, highlighting the importance of prioritising the issue.
By focusing on employee financial wellbeing your business will see improvements in employee engagement. When an employee feels that their employer has their best interests at heart, they are more likely to make an effort to work hard and strive to help the company succeed. Employers who listen to their team’s requirements and thoughts are more likely to gain respect and build a good rapport with their workforce. Employees will be more loyal to the organisation and less likely to search for another job where they feel that they are more valued and appreciated. Research shows that when employees are given or offered company benefits that improve their financial wellbeing, they are 15% more engaged on average in the workplace. When employees feel that their employer cares about their wellbeing, they are said to be 38% more engaged. Financial wellbeing drives workplace productivity.
When employee financial wellbeing is focused upon in the workplace, they will be happier and have more peace of mind due to enhanced financial education. Employees who have fewer financial struggles and a practical long term plan to manage their financial situation and achieve goals will be more able to focus on the tasks at hand and less weighed down by finance-related anxiety. Content employees are unlikely to have problems with high levels of absenteeism, meaning that consistency across departments is achieved.
Stressed employees are more likely to take days off of work due to physical or mental illness caused by severe financial concerns. In the UK, 87% of millennials are affected by financial worries in the workplace. When employees have to take many days off, the rest of their team suffers and overall productivity decreases. This can impact the profit made by your business. When financial wellbeing is encouraged at work, employees feel that they are prioritised and can put their concerns into perspective. They are also more inclined to take care of their physical wellbeing, meaning that they are healthier overall and fit enough to complete their job well.
Overall, taking care of employee financial wellbeing will reduce levels of staff turnover within your organisation, reducing associated costs and ensuring that talented employees do not move to a competitor company.
In conclusion, it is clear that the amount of unclaimed pension pots in the UK is a problem that needs to be addressed to ensure that employee financial and pension wellbeing is a priority within your business. When employees are encouraged to use services to track down their lost pensions they are likely to feel motivated by increased pension savings, therefore taking a more active role in making beneficial decisions when it comes to their finances. Helping employees to find lost pensions through available means not only helps them to work towards a healthier and happier retirement, but benefits your business in terms of productivity and employee wellbeing.