Pension savings "lost" in move between jobs

The Momentum UK Team 06 September 2012

One in 6 workers admit that they lose track company pension pots when they move from job to job according to recent research.

The research, conducted by Prudential, also suggested that 76% of workers had no idea of the value of the funds built up in various company pension pots.

As young people shift more frequently between jobs, losing track could be an increased problem for younger workers.

According to the survey those aged between 18-35 had already had an average of three full-time jobs, while those aged over 55 had an average of five full-time jobs across their whole career.

Stan Russell, of Prudential, said:

“Keeping track of pension savings at every age is important but it is even more crucial for younger workers, who are likely to switch jobs more often, to actively manage this process.

In July the government announced plans to develop a strategy that would allow smaller pension pots to follow individuals as they move from job to job throughout their working life. However, such a strategy may not come into force for some time and may exclude many current savers.

The Department of Work and Pensions said that such a strategy could halve the 50 million pension pots expected to lie dormant by 2050.

Commenting on the Prudential survey, Stan Russell said:

“Saving into a pension today is an important step in the right direction for workers, to help ensure a comfortable retirement.

“It is essential for people to understand what type and level of savings they have built up in the past. They must make sure that their previous employers have their most up-to-date personal details and are sending them annual pension statements, so they can keep themselves properly informed.

“For those who have lost track of their previous company pension pots, the Pensions Tracing Service should be able to help.”