Where is your pension?
Where is your pension?
Research undertaken for Now: Pensions shows that a quarter of over 55's have four or more pension pots. The research shows that Three in five British workers have had at least four jobs in their lifetime, this figure increases to one in ten for people aged over 55.
To view Now: Pensions press release please click here..
Over half of these people are likely to have more than one pension pot and nearly one in ten, have four or more.
Unfortunately over a third of the people who took part in the research admit they don't know where all their pension pots are, this rises to a quarter for people who have admitted that they don't always tell their pension provider that they have moved address.
At the Pensions Advisory Service, many of the telephone calls that we receive through our helplines are from customers asking for assistance in helping to trace an old pension entitlement. We can provide guidance and direction as to what their next steps are
Michelle Cracknell, chief executive, The Pensions Advisory Service said: “Each month The Pensions Advisory Service receives around 200 calls and queries from people who are unable to trace their pensions. The number of people who spend their working life with one employer are now few and far between. As the NOW: Pensions research highlights, many people change jobs several times over their working life and, combine this with moving house and people being automatically enrolled into schemes, the risk of losing track of your pension is high. Until this is addressed the need for somewhere for people to get free independent and expert help is even more important than ever.”
To view the section on our website about tracing an old pension please click here
Automatic enrolment is now in full swing and with more and more employees being enrolled over the next few years, keeping track of your pension savings is extremely important to help you plan financially for your retirement.
Morten Nilsson, CEO of NOW: Pensions, commented: “No matter how long you plan to stay in a job, you should always save in the workplace pension plan. When you pay in, your company pays in so it's like getting a pay rise and the sooner you start, the greater chance you have of a comfortable retirement.”
Nilsson continued: “Automatic enrolment will lead to an explosion in the number of small pension pots. In most cases, having one big pot is better than having lots of small ones that can be eaten up by charges. But, while there is a lot of logic behind your pension pot following you to your new employer, it's imperative that safeguards are put in place to prevent people's hard earned pension savings being automatically transferred into an unsuitable scheme with high charges.
“So that savers can feel confident that wherever their pot goes, it will always be in a scheme which meets certain quality standards, we would like to see schemes used for auto enrolment officially licenced.”
“The government also needs to ensure that the transfer rules and the processes are efficient so members' pots are not eroded by the costs of consolidation.”
If you have questions about any aspect of retirement, please contact us using one of the following methods.