54% of pension holders have two or more pensionsOnly 36% of pension holders know the current value of their pension savingsOne in four (27%) UK working age adults considered consolidating pension pots in the past five years27% UK working age adults say provider communications would trigger them to review their pension
Over half (54%) of pension holders have multiple pension pots, yet only a little over a third (36%) are confident they know the current value of their pension savings, according to new research from Aviva. In addition, almost one in ten (8%) don’t know how many pension pots they have, highlighting how retirement savings can be forgotten or lost as people move jobs throughout their careers.
Since its launch in 2022, Aviva has reconnected people with more than £1.1 billion worth of pensions through its Find and Combine service. The service has processed upwards of 115,000 applications, and a single application can involve a search for several pension pots. The average pension found is valued at almost £14,000, with the largest worth more than £1 million.
The findings come ahead of National Pension Tracing Day on 25 October, which encourages people to track down lost or forgotten pensions. Half (50%) of those surveyed say they do not know how much they have in their pension pots.
When people change jobs, their workplace pension doesn’t automatically follow them to their new employer. Over time, this can leave people with several pension pots from different jobs, which can be easy to lose track of, particularly after house moves or time spent out of work.
Aviva’s Find and Combine service is designed to help people locate pensions from previous employment and bring details of their retirement savings together in one place.
National Pension Tracing Day is a useful prompt for people to track down old pension pots, update your records and build a clearer picture of your retirement finances.
Alistair McQueen, Head of Savings and Retirement at Aviva, said: “Over a lifetime, it’s common to build up a number of workplace pensions, particularly as careers become more flexible and people move employers more often.
“Our Find and Combine service has now helped locate more than £1.1 billion in pension savings, showing that significant retirement wealth can be sitting in pensions people may have forgotten about or lost touch with.
“National Pension Tracing Day is a useful prompt for people to track down old pension pots, update your records and build a clearer picture of your retirement finances. Even relatively modest pots can be worth thousands of pounds and could play an important role in your future retirement income.”
More than a quarter (27%) of respondents considered consolidating multiple pension pots during the past five years, while men are slightly more likely than women to have consolidated theirs (28% vs 25%).
Consolidation will not be right for everyone, particularly those with final salary pensions or pensions with valuable guarantees or benefits. But bringing pensions together can make it easier for savers to see and manage retirement savings in one place.
More than a quarter (27%) of people surveyed say communications from their pension provider would prompt them to review their pension. One in five (17%) would be prompted by a change in pension policy or a change of job, while 16% cite changes to their employer’s pension scheme or policy.
Alistair McQueen added: “Many people don’t engage with their pension until something causes them to act, which is why communications from providers and employers are important.
“Whether you’re starting a new job, reviewing your finances or simply taking stock, spending a few minutes checking where your pensions are and what they’re worth can help you build a clearer picture of your retirement savings.”
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