5 Steps to Take Control of Your Retirement Savings
With National Pension Tracing Day approaching on 25th October, millions of workers across the UK could have thousands of pounds in lost pension savings from previous jobs without even knowing it.
According to newly published research from the Pensions Policy Institute, there are an estimated 3 million lost pension pots across the UK, holding a staggering £18.7 billion in lost pension pots. With the average UK worker changing employers 12 times over their career, losing track of old savings has become an easy trap to fall into.
New research from Scottish Widows highlights how severe this can be for those with a form of vulnerability1:
- 63% of adults have done little to no research into their retirement
- 28% of adults are making no retirement arrangements whatsoever
- 26% of adults feel completely overwhelmed when making financial decisions
- 43% of people want simpler, clearer guidance detailing exactly how much they need to save
This lack of clarity leaves many avoiding pension management simply because they don’t know where to start, resulting in lost pots and missed growth.
Robert Cochran, Pension Expert at Scottish Widows comments:“With billions of pounds sitting in forgotten pots, taking one small step this Pension Tracing Day can replace financial anxiety with clarity.
“Changing jobs is a normal part of working life, but every move makes it easier to leave a piece of your financial future behind. Too many people avoid looking into their pensions because the jargon makes it feel intimidating. But taking control really comes down to answering three simple questions: What have I got? Is it enough? What can I do next?
“Tracing an old pot or logging into a pension app takes just minutes, but it can instantly get you set on the path to creating your retirement plan for a future you can see.”
Robert shares five practical steps to locate lost pots this Pension Tracing Day:
- Retrace your steps across former employers
Make a list of every company you have worked for, particularly those where you were enrolled in a workplace pension. Since workers change jobs an average of 12 times, moving house or updating contact details over the years often means old providers can no longer reach you.
- Track down your lost pots using free tools
Everyone can use the Government’s free Pension Tracing Service, or even better use the tools from providers – such as the one in the Scottish Widows app to locate lost pots from previous jobs using just your National Insurance number. This is an easy way to find your past pensions and the provider will do the work for you, just make sure it’s a free service before you start.
- Find out what your old pensions are worth
Don’t stop at finding the provider’s name. Get a clear view of current pot values, fee structures, and projected retirement income. Having all your figures in front of you transforms a confusing cloud of guesswork into a clear, tangible starting point. Getting a view of your projected retirement income in one place makes it so much easier to plan for your retirement, see if your provider offers this and includes the state pension too!
- Check charges before you consider combining
Merging separate pension plans into one place can simplify administration and reduce fee drag, but rushing into it without checking the details can be costly. Before transferring anything, ensure you won’t lose valuable guarantees, specific payout rights, and consider any exit fees. The best pension tracing tools will do this for you automatically.
- Turn your baseline into a simple action plan
Our Research shows 43% of people want simpler, clearer guidance on how much they need to save. Once you know what you have, use an online calculator to check whether your current contributions match your future goals. Starting small today is far better than avoiding the issue altogether.
