Over a working life that might span 50 years, it's no wonder retirement savings can get lost. Yet it can be difficult to know where to start if you need to track down a lost pension.
If you know one of your retirement pots is missing, you are not alone.
Over half the population has more than one pension, and more than one fifth of those have lost track of where their retirement savings are being held.
Research by the financial services company Aegon estimates that 64 percent of people have multiple pensions. Of those, the number who have lost track of all or one of their pensions is 22 percent. This means that more than seven million people could have misplaced some of their retirement savings.
Wealth management group Tilney also estimates that one fifth of people have a missing pension, often because they failed to notify providers when they moved address.
According to Tilney's research, the average person has worked for 5.8 employers by the time they are over 55, so it's not surprising pensions are lost or misplaced.
This is a problem that looks set to get worse among the younger generation as changing employment patterns mean people these days are more likely to work for multiple employers over their working lives.
First steps to finding your lost money
The UK government's Pension Tracing Service is an online database which provides current contact details for past and present pension schemes.
To use it, you'll need to know the name of your former employer, pension scheme or provider.
The DWP has also been working with the pensions industry, regulators and technology firms with a view to launching a Pensions Dashboard. this would provide people with a consolidated view on a single website of all their work pensions alongside their State pension.
Katie Smith, Head of Pensions at Aegon, says the Pensions Dashboard should simplify the process of finding lost pensions. However, at the time of writing there has been speculation that the idea may yet be abandoned by the Government. Pensions Minister Guy Opperman told the work and pension select committee on July 20th that the Government was still "doing a feasibility study, they are then reviewing that, and a decision will be made". While not ruling out the Pensions Dashboard, he did not give a firm reassurance that it will go ahead either.
Katie Smith says "ditching the dashboard at this point makes little sense and would ultimately make people's retirement planning harder."
Rather than wait for the Government's final decision, it is worth trying to locate your pension, using other means, even if you suspect it may not be worth much.
"It is vital to track down these pots of assets and to determine whether they remain fit for purpose," says Andy James, Head of Retirement planning at Tilney. He says tracking down missing workplace pensions can be problematic where a previous employer from many years past has been acquired or gone bust, moved or re-branded.
How to trace your pension
1) Use the DWP Pension Tracing Service to find your pension by entering you old employer's name, which will generate the current contact address. Simply write to this address, with your current and previous addresses and your National Insurance number. Log on to: www.gov.uk/find-pensions-contact-details
2) Some pension schemes won't have been updated for some time. To get the contact details you will need to fill out an online form with your name, email address and any information you believe is relevant, such as the dates you were at the company and your National Insurance number.
3) Get a State pension forecast, either in paper format or online at: www.gov.uk/check-state-pension
4) Once you've tracked down your pensions, get advice before consolidating them, to make sure you don't lose out on any valuable benefits.
How to manage you retirement savings
One option to avoid losing track of different pension pots is to combine them into one single pension provider. This isn't an option for everyone because:
1) Older pensions may have benefits which would be lost if you moved the money.
2) You may end up paying penalties to transfer, or receive a lower transfer value than the actual sum you have accumulated.
3) You may be paying a low charge for your pension to be managed under the current scheme.
4) You don't want to consolidate all you funds only to find you are paying a much higher management charge.
Aegon's survey found only 27 percent of people are interested in consolidation. The top three reasons for not moving their pensions to one provider were:
1) 46 percent don't want all their eggs in one basket
2) 27 percent don't know the benefits of moving all their pensions
3) 27 percent don't want to pay for an adviser.
Aegon's Kate Smith says pension consolidation wouldn't be right for everyone, although if you have a lot of small pots it could mean you would be better able to keep tabs on them and manage them,
"Some older-style pensions will have valuable benefits which may be lost on transfer," she says. Bringing together smaller pots might, however be beneficial.
"It's difficult for people to keep track of small pension pots, particularly at the beginning of someone's working life."
Pensions freedom
As a result of the new pensions flexibility you are no longer obliged to buy an annuity with your pension fund when you retire.
One option is draw down, which enables you to take money from your fund without converting the whole pot into an annuity.
Another is cashing in your pension, which has become common among people with small funds. However, you should think very carefully before you take this route- you will most likely have to pay extra tax, and you may be hit by exorbitant fees.
The City watchdog, the Financial Conduct Authority (FCA) has recently published a report warning that savers who have crashed in pensions under new freedoms are losing up to £13,000 in rip-off fees. About 100,000 savers area at risk of 'complex and opaque' charges levied by insurers when they begin to withdraw money form their pensions, it found. In the worst cases, customers are paying up o 44 separate charges, the FCA found. It said some pensioners were overpaying by as much as £650 a year on £100,000 pension-pot or £13,000 over a retirement spanning 20 years.
What's more, 50,000 savers are missing out on a third of their potential retirement income- or about £1500 a year- because their money has been moved into a poor-value cash fund that pays little or no interest.
The FCA has announced it will introduce tough new rules to protect customers falling victim to these charges,. This could include a cap on fees, forcing insurers to spell out charges, and banning them from automatically moving customers into poor-value cash funds in retirement.
Until that happens, it is important to think through all the options carefully before you withdraw some or all of the cash from your pension.
Find out more
Pension Tracing Service: The Pension Service 9, Mail Handling Site A, Wolverhampton WV98 1LU,Tel: 0800 7310193, Monday to Friday, 8am to 6pm. Website: www.gov.uk/find-pension-contact-details
Find a later-life mortgage
Make your home dementia-friendly
Avoid Hidden Holiday Costs
Switch and Save
Don't ignore Will Power
What will the Pensions Dashboard mean for you?
Buying a home in later life
Risks & opportunities of no deal Brexit for property investors
Giving up plastic
We are all a bit of an animal when it comes to money
Grandparents access rights
The value of volunteers
Is park life right for you?
Supporting students
Inherited Family Properties
Life on the open road
Interest-only mortgages: are you sitting on a timebomb?
Choice guide to... Buying and selling a car: Selling
Choice guide to... Buying and selling a car: Where to buy
Choice guide to... Buying and selling a car
Holiday hoaxes to dodge
Is it Possible to Be a Successful Ethical Investor?
Health care in later life
Nuptials on a budget
Tips to save money in Spring
Put the brake on car premiums
Money and Rights News: July
Take the stress out of your airport experience
The gentler route to retirement
Go contactless- safely
Choice guide to Arranging a Funeral
Five online services to save you money before Christmas
The best years of your life
Wronged Pensioners call on PM for a change in the law
Setting up a Business for the Over 50s
The building society of Mum and Dad
'Olderpreneurs' profit from experience
Payouts for Delays
Looking for a retirement home
Dealing with debt
Is it worth working for longer?
Extra Help at the airport
Thriftiness starts at home
Investing in an uncertain world
Coping with financial stress as a senior
What are the similarities between Standard Pensions and SIPPs?
Managing Risk When Investing Savings
Trading with your Savings? 3 Things to Consider
When should you start saving for retirement?
Beat the VAT Hike
Downsize your life
Attention: Ask the Experts Pages
10 essential websites for over 50's
Your Questions Answered
Time to buy a new car
Profile: Nicola Walker
Enjoy Britain: UK Staycations
Discoveries: Visiting Ireland
Treasures: St Magnus Cathedral, Orkney
Health: Staying safe in the sun. Health benefits of turmeric. A Yoga exercise to try
Beauty: Products to enhance grey hair
Nostalgia: Britain at War in colour
60 Years of Private Eye
State Benefits and end of life planning
Plus: Craft & sewing projects, food & drink, garden news, garden birdwatch, puzzles pages, book, DVD and CD reviews.
