The Pension Tracing Service could see another record breaking year as the number of people calling about their lost pension climbs.
A freedom of information request to the Pension Tracing Service by Hargreaves Lansdown found it received 31,505 calls between January 1 and May 24 this year, meaning it is on course to top last year’s record of 63,381.
It also found the service has received more than 276,000 calls since January 2019 and demand is growing.
But Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said this barely scratches the surface with research from the Pensions Policy Institute estimating there were 2.8mn lost pension pots.
She said: “We are approaching National Pension Tracing Day which urges us to spend the extra hour we get from the clocks going back tracing these lost pensions. It’s a move that could have a truly transformative effect on your retirement and could be an hour very well spent.
“Once you’ve tracked down your pensions, it might make sense to consolidate them. This can cut down on time and admin and will give you a much clearer idea of how much you have, so you can plan with more certainty.
“However, think carefully before you consolidate. Some pensions might operate expensive exit fees if you transfer, or you might miss out on valuable benefits like guaranteed annuity rates. It’s also worth saying that it rarely makes sense to move a defined benefit pension. Take advice or guidance as necessary to make sure you come to the right decision for you.”
Recent research from Hargreaves Lansdown found 59 per cent of the 1,200 people surveyed had two or more pensions.
As people change jobs throughout their careers there is a chance they can lose track of the pensions they have built up.
Morrissey added: “We move jobs several times during our career, and it can be easy to lose track of that small pension you had in your first job. However, what if you were to find out that that tiny pension you had has grown and could make a significant impact on your retirement?
“This is the reality for many people who could be missing out on thousands of pounds that could be turned into a retirement income.
The advent of auto-enrolment has got more of us saving than ever but, as we move through our career, we don’t keep contact details updated and so there’s a chance we lose track.”
amy.austin@ft.com
