You are here: Home - Retirement -

One in six workers ‘lost track’ of pension pot

Written by:
A sixth of workers have lost track of a company pension fund after moving jobs and the vast majority have no idea how much their contributions amount to, Prudential research has found.

The poll of 2,000 workers revealed 76% do not know how much their pension pots are worth.

It also found 81% of workers do not bother to transfer their previous company pensions across to their new employer, while 15% relied on their new bosses to do it.

The insurer said the results were an indication the number of lost pension pots would increase.

Stan Russell, retirement expert at Prudential, said: “Saving into a pension today is an important step in the right direction for workers, to help ensure a comfortable retirement.”

He added it was essential people understand the amount of retirement saving their have built up and keep providers up-to-date with personal details.

“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.”

Russell urged workers to consider the benefits of transferring previous pension pots into a new employer’s scheme and said “seeking advice” was a must.

Pensions minister Steve Webb wants to change the system to a ‘pot follows member’ model to tackle the problem of dealing with small pot abandonment and consolidation.

The system would see accrued pension money would follow a worker from job to job. However, legislation on the issue is yet to be drafted.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
BLOG: Learning a valuable lesson in finance

I recently read an article about a student who was complaining about the high cost of food. It turned out...