Billions of pounds worth of pension pots are left unclaimed by people forgetting to tell their pension provider when they move home.
Uckfield-based Cranwell Wealth Solutions is highlighting the issue and asking: “Does every employer and private sector pension provider you have ever saved with know your current address?”
The company says that, according to the Association of British Insurers (ABI), there are about 1.6 million unclaimed pension pots worth £19.4 billion. That’s an average value of £13,000.
And while 89% of people would contact their GP and dentist about a new address, and 66% would remember to notify their bank, only 4% would tell their pension provider – about the same number who would think to contact Amazon.
The ABI says providers are attempting to reunite savers with their lost pensions by sending letters to the last-known address, but with only one in 25 people notifying them when they move home, it’s an uphill battle.
If you think you could be one of the many with unclaimed pension pots, you could either use the Government’s online service to track down past pensions by visiting https://www.gov.uk/find-pension-contact-details or ask a wealth management company such as Cranwell Wealth Solutions to do this for you.
After that you can seek advice on what to do with your unclaimed pension pots.
Peter Morris Chartered Financial Planner from Cranwell Wealth Solutions said: “It never ceases to amaze me just how much value we are able to add to a client when we go about tracking down old pension pots on their behalf.
“From simply streamlining and reducing their administration, to explaining any additional benefits they may be entitled to that they weren’t aware of can make a huge difference.
“Clients will often have accumulated pension pots from various employers which may not be working as hard as they could.
“It’s a brilliant exercise to go through with a client and can start to form a picture of how the retirement they are working towards may look and what action can be taken to improve that too.”