More than €500 million sits unclaimed in old workplace pensions in Ireland, with experts warning many people have lost track of savings built up in previous jobs
Pensions (stock)(Image: SolStock via Getty Images)
Thousands of Irish workers may be overlooking pension savings, with estimates suggesting over €500m remains unclaimed in former workplace schemes.
Industry specialists say numerous individuals have lost sight of pensions accumulated in earlier roles, frequently unaware the funds remain accessible for collection. Certain projections indicate the actual amount could be substantially greater, possibly approaching €1 billion in “lost” or overlooked pension savings throughout Ireland, reports the Irish Mirror.
James Dorrian, pensions specialist at the National Pension Helpline, said it’s typical for individuals to misplace details of previous schemes as circumstances change. He explained: “People often switch jobs, move house or go abroad when they’re not thinking about retirement in any way. And then suddenly ten or 15 years have passed.
“Then they start to wonder whether they were paying into a pension. The good news is that the money you’ve put into old workplace pensions doesn’t just disappear – it’s there waiting for you to come back for it.”
James noted many are taken aback by the sums they discover, even from brief employment periods. He continued: “People regularly uncover pots worth hundreds or even thousands of euro from jobs they can barely even remember.”
He explained the initial action for anyone attempting to locate a missing pension involves creating a straightforward employment history record. The expert recommended: “Write down every job you’ve ever had, including part-time and temporary roles. Then gather your PPS number and any previous addresses. That’s often enough information to start the process.
“See if you can find any old payslips or contracts for any details. If you can’t locate anything, and you are unsure who your provider was, your former employer’s payroll or HR department could point you in the right direction.
“A financial adviser can often make the process of tracking down forgotten pensions easier.” James also cautioned that many individuals fail to review their existing pensions, potentially sacrificing growth or exposing themselves to needless risk.
He explained: “If you haven’t reviewed your pension in years, your investment strategy might no longer suit your age or circumstances. You could be missing out on growth or taking on too much risk.
“Each pension fund comes with its own risk profile, and the closer you get to retirement, the chances are that you’ll want to focus on preserving your savings. This essentially means choosing lower risk funds or having a more diversified portfolio.
“But too many people don’t take advantage of the tax relief that’s available to them. For example, over 60s can contribute up to 40% of their earnings with tax relief up to a certain limit – which means significant tax savings while boosting your pension pot.”
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