£31bn worth of pension pots remain unclaimed, research finds

An estimated 3.3 million lost pension pots worth a combined £31.1bn are waiting to be claimed across the UK, according to research from the Pensions Policy Institute.

The research found the average lost pension pot is worth £9,470, with increasing job mobility and automatic enrolment contributing to more people losing track of retirement savings.

Joe Lytwyn, personal finance expert at thimbl.com, urged anyone who has changed jobs to check whether they have forgotten workplace pensions, particularly if they have moved home or failed to update their contact details with pension providers.

He said: “Many people don’t realise how easy it is to lose track of a pension. If you’ve changed jobs several times over the years, there’s a good chance you’ve built up more than one workplace pension, and it’s surprisingly easy for one to slip through the cracks.

“With the average lost pension estimated to be worth almost £9,500, taking the time to check could have a meaningful impact on your retirement. Even if you think you’ve kept on top of your finances, it’s worth making sure there isn’t an old pension sitting with a previous employer.”

The Pensions Policy Institute said the number of lost pension pots has risen significantly in recent years, largely due to automatic enrolment and people changing jobs more frequently throughout their careers.

The Government provides a free Pension Tracing Service to help people locate workplace and personal pensions they may have lost track of.

Lytwyn added: “People often spend time switching bank accounts, comparing insurance or hunting for savings on household bills, but checking for an old pension is something that’s easily overlooked.