JOB-SWAPPING BRITS MISS OUT ON FORGOTTEN PENSIONS

Over half of UK adults have no idea how much money they’ve built up in pension schemes – and one in six people have no details of where their money is saved.

Findings published by Government website Directgov show that an alarming number of people aren’t keeping track of pensions savings which could make a substantial difference to their retirement income. People could be losing out on pension entitlements worth thousands of pounds.

The national survey found that one of the main reasons for losing track of pensions is the number of times people change jobs, with one in five UK adults changing jobs five times or more by the time they are 34 years old.

It also found that one in three Brits aged over 18 have two or more pensions illustrating that this problem is likely to get worse.

To help people track down their lost pension, the government has launched a free pension tracing service at www.direct.gov.uk , the website which brings public services together all in one place.

Fifteen per cent of those surveyed said the reason for losing track of a pension is because they believe it is not worth much. However, people can be pleasantly surprised if they decide to trace previous pensions.

Tony Douglas, a 59-year-old civil servant from Newcastle, thought his old pension scheme was worthless until he used the pension tracing service via Directgov and discovered it was worth ?25,000.

Tony Douglas said: “Finding out that my old pension schemes were worth thousands of pounds was a great surprise. Needless to say that this cash will certainly make a huge difference to my standard of living once I retire. It doesn’t take very long to use the pension tracing service but the results could be life changing.”

Tiffany St James, Director of Communications for Directgov, said: “Saving for the future is crucial but our research suggests many UK adults are losing touch with their pensions and don’t know how much money they have saved.”

The free pensions tracing service on Directgov gives people an opportunity to trace ‘lost’ pensions, enabling them to better plan for their future. For those without access to the internet, you can also order a pensions tracing form through Directgov digital television or call the Pension Tracing Service on 0845 6002 537.

Nicolas Owen, BBC News Presenter said: “Your pension is one of the most important financial asset you have, so it’s simply astonishing to hear that so many people are losing track of their money throughout their professional lives. Excuses given range from being disorganised to moving house to thinking they are worthless, but the fact is that this is your future - your retirement, so it is vital that your track these funds down. It is estimated that there is a large pot of money out there, so it’s worth going on Directgov to see if you have a share of this sum.”

The Pension Tracing Service helps people find pension schemes they may have mislaid details for. With access to a database of over 200,000 occupational and personal pension schemes, this free service can provide individuals with contact details for their lost pension schemes. In addition to the tracing service, there is a wealth of information, services and transactions available on Directgov, from advice on retirement and wills to taking a course, finding a new job to understanding benefits rights, planning a journey and finding out about local recycling schemes.
 

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