Nearly £20bn of pension pots remain unclaimed

Up to £20bn worth of pension pots could remain unclaimed, new research from the Pensions Policy Institute (PPI) has found.

The research, which surveyed 50 per cent of the defined contribution pensions market, found 800,000 lost pensions worth an estimated £9.7bn, equating to £13,000 per pot.

The survey, carried out on behalf of the Association of British Insurers (ABI), did not include public sector or trust-based schemes, meaning the figure could be even higher.

ABI director of long-term savings, Yvonne Braun, said: “These findings highlight the jaw-dropping scale of the lost pensions problem. Unclaimed pensions can make a real difference to millions of savers who have simply lost touch with their pension providers.

“The industry has stepped up its efforts to re-connect savers with their lost nest eggs, developing a new framework launched earlier this year to help pension providers trace ‘gone-away’ customers more consistently. But industry efforts can only go so far – we need a radical digital solution to cope with the way society is changing, or the problem will get worse.”

According to the ABI, over 375,000 attempts were made to connect customers with their lost pension pots in 2017, leading to £1bn of assets being reunited.

The government has predicted that there could be up to 50 million dormant and lost pensions by 2050.

The growing problem has led to increased calls for the pensions dashboard, which would allow members to see all their pension savings, including their state pension.

“It is important that the government stands by its promises to take forward the pensions dashboard. This project has cross-party support, with the backing of consumer groups, and could mean a more secure retirement for millions of savers.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.