Many individuals may struggle to keep track of their pension funds, especially if they have changed jobs frequently. Research conducted in 2024 by the Pensions Policy Institute (PPI) revealed that approximately £31.1 billion is currently held in unclaimed or lost pension pots.
One man, John Ferguson, 32, residing in Edinburgh and employed in the security sector, successfully located £10,000 in missing pension funds by utilizing the Penny app. With the app’s assistance, he identified seven pension pots, two of which he was unaware of previously.
Ferguson anticipates uncovering two or three more pensions in the future. He expressed his satisfaction with the Penny app, stating that minimal information is required to receive valuable assistance.
The Penny app facilitates the retrieval of lost pension pots by utilizing your National Insurance number and any details related to your prior employment or pension providers. Additionally, the app offers the option to consolidate multiple pensions into one, although certain considerations must be made beforehand.
Before transferring your plans, it is essential to determine if your current pension provider imposes any transfer fees or if you risk losing specific benefits such as guaranteed annuity rates or tax-free cash protection. Furthermore, understanding the charges associated with a new provider is crucial. Penny, for instance, charges an annual fee of 0.75% for its default pension plans.
For individuals seeking to consolidate their pensions or make significant decisions regarding their retirement savings, it is advisable to seek free pension advice beforehand. The UK Government provides a free tool, the Pension Tracing Service, that aids in locating lost pensions by requiring details of past employment.
While the Pension Tracing Service offers contact information for providers, it does not disclose the invested amounts. Therefore, direct contact with the pension administrator is necessary to ascertain fund details. Additionally, a new pensions dashboard tool is set to launch this year, allowing individuals to access all their pension information from various providers in a single platform. By October 31, 2026, approximately 3,000 providers and schemes are expected to be linked to the dashboard.
