The idea of simply misplacing thousands of pounds sounds stupid, right? Actually, it can be easier than you think. These days, it’s commonplace to change your job several times throughout your career. And with every move, you’ll be placed in a different company pension scheme.
The money placed into each pot is yours. Even if you move jobs again or become self-employed later, the cash in each pension pot you collect will always be yours.
Whilst collecting all this money is great, there is a slight issue. The more pots you collect, the easier it is to lose track of them.
In fact, the Pensions and Lifetime Savings Association reported that a total of £31.1 billion lay in unclaimed pensions in 2024. What’s more, one in ten workers suspected they had lost up to £10,000*.
How can you make sure this doesn’t happen? We’ve teamed up with My Money Expert to help:
Start the search
First things first, it’s important to track down any pension pots you might have. To do this, you can use the Government’s pension tracing tool. All you need to do is enter the name of your previous employers, and the tool will give you the contact details of your workplace pension provider. This will let you contact your pension provider and find out how much you have in your pot.
It might be a bit fiddly, but understanding how much you have across the board will help you understand how much money you have.
Deciding what to do
Once you understand how much you have in all your pensions, you can decide what to do with it. If you’re under 55, you won’t be able to take out your money. However, you can consider moving all your money into one pension pot.
Moving all your money into one place can have many benefits, such as reducing the fees you pay to pension providers, cutting down on admin, and the potential to help your pot grow faster. Research from AJ Bell has found that combining just three pensions could boost your pot by up to £7000.
Where to move your money
Deciding where or not to move some or all of your money can be tricky. After all, moving your money could result in higher exit fees or the loss of some hidden benefits.
This is why speaking to an independent financial adviser before making a final decision is important. They will be able to help you understand if moving some or all of your money into one place is the right option for you.
They can also help you find the right place to move your money (if it is the right option), helping your money work as hard as possible to set you up for the future you want.
Moving your money could be the first positive step in keeping track of your pensions, but it shouldn’t be an option you explore alone. If this is an option you’re considering and you don’t know where to start, why not speak to an adviser today?
*PLSA.com, October 2024
Book a no-obligation call with My Money Expert
Request callback
My Money Expert has been helping the UK to unlock its financial potential since 2010. Rated 5 Stars on Trustpilot, we offer regulated independent financial advice on a variety of areas including investments, ISAs, pension consolidation and retirement planning. We’re proud to be a B Corporation and are committed to doing right by our clients, as well as the wider community.