Pensioners urged to check if they have a ‘lost’ £9,500 left to claim – follow three steps
Money Saving Expert revealed a total of £30bn is thought to exist in unclaimed pensions in the UK.
Money Saving Expert revealed you could have (Image: Getty)
Pensioners have been advised to check if they’re owed a “lost” pot of money. The average person could be missing out on around £9,500.
According to Money Saving Expert (MSE), the consumer advice site set up by Martin Lewis, many Brits could have unclaimed pension money and don’t even realise. This is because over the years you have moved jobs, transferring pension providers or because your pension provider has merged or rebranded.
Therefore, it’s always worth checking with around £30 billion in total said to be unclaimed in the UK. On its website MSE explained: “There can’t be many more (potentially) profitable uses of time than to spend a bit of it checking if you’ve any lost pensions – especially for those who worked for lots of different firms over lots of years.
“Astoundingly, more than £30 billion’s worth is thought to have gone astray, worth an average of £9,500 for those that have lost one (though some amounts can be far bigger).
“This guide explains how to find lost pensions for free, which could seriously bolster your retirement.”
The average unclaimed pension pot could be worth over £9,500 (Image: Getty)
According to MSE the most common reasons for having lost pension funds include:
- You’ve moved house without updating your details with your pension provider
- You’ve changed jobs a lot over the years
- Your pension provider has merged or rebranded
However, just because you were employed somewhere, it doesn’t always mean you’ll have had a pension through that employer. MSE said: “Nowadays, employers must automatically enrol most employees into their workplace pension schemes, so you’re likely to have pensions from more recent jobs – but this wasn’t always the case.
“Pension rules have changed over the years, so whether you built up a pension could depend on when and how long you were working for.” MSE compiled a rough guide for knowing the situation with your pension.
Before April 1975 – If you left your employer before April 1975, it’s likely you’ll have had any pension contributions refunded. Also some schemes didn’t require members to pay contributions, so you wouldn’t be entitled to any pension benefits if this was the case
April 1975 to April 1988 – If you left your employer between April 1975 and April 1988, were over age 26 and had completed five years’ service by the time you left, a pension may have been kept for you. If you left with less than five years’ service, you might have had your contributions refunded.
April 1988 onwards – If you left your employer after April 1988, you might be entitled to a pension. This is provided you had completed two years’ service. If you left with less than two years’ service, you might have had your contributions refunded.
One MSE reader got in touch to say he had discovered an unclaimed pension pot worth more than £137,000. Richard wrote: “I followed the advice and after a few months managed to locate my old pension provider, who were now Aviva.
“After a few calls with them they found my old pension which I had stopped paying into during the 1990s. When I called to check the current valuation, I still remember the lady at Aviva saying, ‘Oh my God, do you know how much your pension is worth?’ She was shocked that it had reached a value of £137,749.”
How to find lost pensions for free
MSE shared a step-by-step guide to finding any lost pension money:
- Make a list of all your old employers so you know how many pensions you’re looking for
- Use the free Pension Tracing Service online or you can call 0800 731 0193.
- Once you’ve got the details from the Pension Tracing Service contact the pension firm
- If you’re unable to remember the names of your past workplaces or of private pension plan providers you can contact another free service called Gretel
