UK: One in eight savers have 'forgotten' pension
A survey of almost ten thousand people who hold a pension has revealed that just under one in eight (13%) admitted they have at least one pension that they had forgotten about.
This is equal to more than 2.5 million pension policies currently sitting in the back of people’s minds.
Among those with a forgotten pension, the majority believe they have misplaced one pot (77%), although 17% think they have forgotten about two and 6% have forgotten three or more.
According to Government figures, there is an estimated £400m in unclaimed pension savings. At the same time, almost three in five (59%) UK adults are worried about not having enough money to last them in retirement.
Although tracking down a lost pension can provide a valuable boost to retirement income, those who delay could receive a smaller amount than expected.
Forgotten pensions may have been subject to charges and not invested in the best way suited to the policyholder, making it worth less than it would have been if it was actively managed.
This new research comes after Aviva revealed the lack of engagement around pensions earlier this year.
More than a quarter of savers (28%) admitted to never reviewing their retirement savings, while almost a fifth (19%) of those with a pension said they review it less than once every 5 years5.
Aviva also revealed that since the introduction of auto-enrolment over three years ago, the number of pension savers who are unaware of their fund choices or have never reviewed them has risen to almost 1.5 million people or 15% of private sector employees, up from 9% at the start of 2013. ■