Millions of workers in Britain are sitting on retirement savings they do not know exist. These are not the plots of some City conspiracy. They are the forgotten fruits of auto-enrolment, job-hopping, and workplace pensions that have slipped through the cracks of a fragmented system.
Take the case of Sarah, a 42-year-old care worker from Leeds. She has had five jobs in the past decade. Each employer enrolled her in a workplace pension. But when she moved on, she lost track. ‘I assumed the money had gone,’ she says. ‘I didn’t even think to check.’
She is not alone. The Pensions Policy Institute estimates that there are nearly 2 million ‘lost’ pension pots in the UK worth billions of pounds. With auto-enrolment now a decade old, the number is only growing. The average deferred pot is small, around £9,000, but for many people, that sum could be a lifeline.
So how do you check without realising? The government’s Pension Tracing Service is free and simple. You need the name of a former employer. You call 0800 731 0193 or use the online tool. It will point you to the pension provider. From there, you can request a statement.
But the system has flaws. Many schemes are small, with high charges that eat away at savings. A 2018 study found that some workers lost over a third of their pot to fees. And if you have multiple small pots, they are hard to manage. The government announced a ‘pot follows member’ scheme to consolidate pots automatically, but it has been delayed.
For now, the onus is on you. Check your old payslips and contact HMRC if you are unsure. Do not let your hard-earned savings slip through the cracks. In this cost of living crisis, every penny counts.
