How to find lost pensions?

Since the introduction of the workplace pension and automatic enrolment, designed to improve retirement planning, most working people in the UK now end up with several different pensions from various employers during their working lives. Pensions are not easy to keep track of, and it’s quite common for a pension to get overlooked and forgotten —it’s estimated that one in four people have lost at least one pension.

If you are one of these people, then the first thing you need to do is learn how to find lost pensions to maximise your savings for retirement. At Moneyfarm, we’re here to help, starting with this guide on how to find old pensions.

Have I lost a pension?

You should receive an annual statement from any pension provider you have a workplace or any other private or personal pension with. However, if you move home and you don’t update your pension provider, statements can easily go missing. This is the main reason people lose track of old pensions and the more pensions you have, the more admin and the harder it is to stay on top of them all.

As mentioned at the beginning of this how to find lost pensions guide, most people work for several employers throughout their working lives. A new employer will usually enrol you in their workplace pension scheme. The more frequently you change jobs, the more old workplace pensions you will have and the easier it becomes to lose them. So, you may need to know how to trace old pensions if you’ve lost track of any of them.

Another reason some people need to find a lost pension may be that they opted out of SERPS (State Earnings-Related Pension Scheme) in the 80s and 90s. Opting out meant that your money could have been reinvested for you elsewhere in a different pension scheme. It’s quite common that these pensions have gone missing over time, and people need help tracking them down.

To stop people worrying about how to find lost pensions in the future, the UK government has confirmed it is committed to a pensions dashboard that would make it quick and easy to find any and all of your pensions in one place. But for now, you could find yourself asking, “How do I find old pensions?”

The benefit of finding old pensions

Finding a lost pension  can make an enormous difference to your quality of life in retirement.

Money paid into private, or workplace pensions is usually invested in funds. Even relatively small pension pots could grow in value over time thanks to being long-term investments and benefitting from compound interest. It means that if you can find a lost pension, it could be worth a sizeable amount of money, which is why knowing how to find lost pensions is so important.

How to find an old pension using pension tracing services

According to the Association of British Insurers (ABI), there are nearly 3 million lost pension pots worth almost £26.6 billion. Figures from other sources, like the Centre for Economics and Business Research (CEBR), state that by 2050, the value of lost pensions could rise to a staggering £50bn.

The average pot size of these forgotten pension pots is £9,500. One way of tracing old pensions yourself is via the Government Pension Tracing Service. They can tell you what pension provider you may have a pension with, and you will then need to contact each provider directly and try to find your lost pension and its value.

Moneyfarm’s new Find, Check & Transfer* service will do all the hard work for you, from tracking down and finding any lost pensions to checking each pension we find for valuable benefits or penalties and then completing the transfer for you. Whatever your investment strategy, if you think you might have a pension that’s being neglected or has been forgotten completely, it’s usually a good move to check for old, lost pensions and combine them into a new pension that’s right for you.

Find lost pension with NI number

You’ll need to use your National Insurance number to help find lost pensions. This is especially important if you are tracking down pensions as a result of opting out of SERPS. Also, if you’re trying to figure out how to find lost pensions that were set up as workplace pensions by previous employers. In that case, the names of those employers, the dates you worked there and the names of the pension providers they used are helpful pieces of information that will aid your search.

Contacting a previous employer– what you’ll need and what to ask

If you are going to contact a previous employer to try and trace old pensions, here is the information you will need:

• The name and address of the employer.
• The dates on which your employment with them began and ended
• The dates on which you joined and left their pension schemes (if you have them)

When you contact them, you can ask:

• I’m trying to find my old pension. What is the name and contact details of the pension provider?
• I’m attempting to find my lost pension. What type of pension scheme did you enrol me in? What is the policy number?

The more information you can gather when working out how to find lost pensions, the better your chances to trace an old pension will be.

Contacting the pension provider

Once you know who the pension provider is and you’ve gathered as much information as you can, here’s ideally what you should provide them with to ease the search:

• The pension plan number.
• Your date of birth.
• Your NI number
• The date on which the pension was set up.

You might also consider asking them these questions:

• What is the current value of my pension pot?
• Is anyone named for death benefits – if so, who?
• How much money was paid in?
• What are the management fees?
• What if the projected value of the pot at age 55?
• What funds is it invested in?
• Do transfer charges or penalties apply?
• Are there any benefits you could lose when you transfer?

You can also use a service like Moneyfarm’s Find, Check & Transfer* service, which will do all this work for you. Not only can we find your lost pensions, we can get the answers you need and check for any valuable benefits you could lose or any penalties you may have to pay, making your life easier and giving you peace of mind with your pension.

Options after successfully completing a how-to find lost pensions exercise

After successfully tracing lost pensions, what comes next? The answer depends on your age, your financial goals, and your attitude towards risk.

If you’re 55 years of age or over (rising to 57 in 2028), you’ll have the option to withdraw 25% of any pension pot tax-free. Anything over and above the 25% could be liable for income tax when you withdraw it, according to how much you withdraw per tax year and your total income in any tax year.

All pension withdrawals from workplace, private pensions, SIPPs, self-employed pensions, and your state pension contribute to your income. So, too, do earnings from employment and income from other streams, like property or other investments. So, when you trace old pensions as part of your pension scheme investment planning, you need to be aware that as well as increasing the money you’ve saved for your retirement, pensions can also increase your tax liability.

Another option when you reach retirement age, is to use your pension pot to buy an annuity.

Combine and transfer your pension

If you do find old pensions, one of the pension options you might want to consider is transferring them and combining all your pensions together into one account. It could be an existing account that you believe to be performing well, or you might prefer to consolidate your pensions and transfer them into a new account.

If you are successful with your how to find lost pensions exercise, a pension transfer can help you take underperforming pensions and move them to a new provider and into a new account that could provide improved returns. The other advantage of combining various pensions into one is that you only have one pension account to monitor and, if necessary, manage, making your life easier and it less likely you’ll lose track of your money again in the future

Workplace defined contribution schemes are easy to transfer, but if you have a defined benefit workplace pension/scheme, you may need to think twice. It’s recommended you take expert advice, as you could lose the otherwise guaranteed benefits.

Good financial planning is crucial for ensuring a comfortable retirement. Knowing how to find lost pensions could be key to maximising your savings and income for retirement, even more so if you are hoping to retire at 55. If this is the case, knowing how to invest money and starting to do so at the earliest age you can is essential.

FAQs

What to do if your pension provider no longer exists?
If your pension provider no longer exists, the pension fund, or part of it, might be covered by the Financial Conduct Authority (FCA). How much you might be able to recover depends on where the money was invested and the type of pension involved.
What are the common mistakes people make when searching for lost pensions?
The most common mistakes include not gathering the correct information regarding previous employers’ names and addresses and being unable to identify the pension provider. Another common error is using a service provider that charges a high fee or getting involved in a scam.
Are there any costs associated with tracing lost pensions?
The Government Pension Tracing Service is 100% free. However, it should be borne in mind that tracing lost pensions is only the beginning. After finding an old pension, there’s still much work to do if you want to transfer it. But help is available here, too. It’s not free on account of the time consuming process. Moneyfarm’s find, check and transfer service does this work for you for a 1% fee.
Are there tax implications for reclaiming a lost pension?
The lifetime allowance was abolished in April 2024. However, there is still a limit (set at £268,275 for those without Lifetime Allowance protection) after which income tax can apply. The total sum you choose to withdraw from any or all of your pensions can be taxable depending on your total income per tax year. The normal income tax brackets apply.
How long does it typically take to find a lost pension?
The length of time it takes to trace a lost pension depends partly on how long it takes you to find the necessary information. You’ll need the name of the employer you think may be responsible, the name of the pension provider, and your NI number. Having details of the pension will also help. Once you complete the application form, the average time the tracing process takes is 4 to 6 weeks.