Many people in the UK could be sitting on a hidden treasure and not even know it. According to new research by the Pensions Policy Institute (PPI), there are around 3.3 million lost pensions across the country. These forgotten pension pots are now worth an average of £9,470 each—and in some cases, even more.
Experts are urging Britons to use free pension tracing tools to track down any old pensions they may have forgotten about. With just a few clicks, you could recover a large sum that might boost your retirement savings significantly.
Why Are So Many Pensions Being Lost?
The main reason so many pensions are being lost is that people now change jobs more frequently. Every time someone joins a new job with a different pension scheme, they might leave behind a small pension pot. Over time, they forget about it, especially if they don’t receive regular updates or statements.
Auto-enrolment, which makes it easier for workers to join a pension plan, has also led to more small pension pots being created—and left behind.
How Much Money Is Being Missed?
The total value of lost pensions in the UK has gone up by 60% since 2018. That’s nearly £12 billion in unclaimed savings. On average, a lost pension is worth £9,470, but for people aged between 55 and 75, the amount rises to £13,620.
Even small pensions can grow a lot over time. For example, if a £10,000 pension grew at 5% per year for 10 years, it would be worth more than £16,400.
How to Find a Lost Pension
Finding a lost pension is now easier than ever. You can use tracing tools like:
- Pension Attention
- Gretel
- Government’s Free Pension Tracing Service
To use the government service, you just need the name of your former employer or pension provider. The tool will give you the contact details, and you can follow up from there.
Chris Blackwood from the Pension Attention campaign says: “If you can do one thing today, use the pension tracing tools. It only takes a few clicks and can make a big difference to your future.”
Why You Should Act Now
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, says it’s important to act sooner rather than later. Even a pension from a job you had 10 or 15 years ago might have grown into a useful sum. With 21% of people admitting they’ve lost track of a pension—and another 18% unsure if they have—this is a real issue for millions.
She says: “This could play an important role in your retirement income. The good news is, you can still do something about it.”
If you’ve worked multiple jobs over the years, there’s a good chance you may have a lost pension waiting to be claimed. With average pots worth nearly £9,500, taking a few minutes to check could be one of the smartest financial moves you make this year. These savings can have a serious impact on your retirement lifestyle. Don’t wait—use a pension tracing tool today and secure what’s already yours.
FAQs
What is a lost pension and how does it happen?
A lost pension is a workplace pension you’ve contributed to in a previous job but lost track of over time. It usually happens when people change jobs frequently and forget about older pension schemes.
How much money could a lost pension be worth?
On average, a lost pension in the UK is worth £9,470. Among those aged 55 to 75, the average value rises to £13,620.
How can I trace a lost pension in the UK?
You can use services like Pension Attention, Gretel, or the Government’s free Pension Tracing Service. You’ll need your old employer’s or pension provider’s name to start.
Is it worth claiming small lost pensions?
Yes. Even small pensions can grow significantly over time. A £10,000 pension could grow to over £16,400 in 10 years at a 5% annual return.
Why are lost pensions becoming more common?
Due to job changes and auto-enrolment, people now have more pension pots. Many forget to update or track them, leading to millions of unclaimed pensions.
