- Millions of UK adults remain unaware of all their pension pots, jeopardising their financial security.
- Research reveals £31.1B locked in unclaimed pensions, with experts urging savers to take immediate action.
What happened: UK savers face pension uncertainty, risking their retirement plans.
Millions of UK working-age adults are unaware of where all their pension pots are, creating significant risks for their financial future. Research conducted by Raindrop, a pension-finding platform, highlights that only 19% of non-retired adults are confident about the location of all their retirement savings. The findings reveal widespread confusion, with approximately £31.1B held in lost pension pots across the UK. Around 3.3 million unclaimed pensions, averaging £9,500 each, remain unaccounted for.
This situation has created growing concern, particularly for those aged 35-54. Nearly one-fifth of this age group fears their savings will be insufficient, while 16% of working-age adults anticipate delaying retirement due to financial constraints. Raindrop co-founder Vivan Shridharani emphasised the importance of addressing the crisis: “Locating all previous pension pots is the first step savers must take to ensure their financial security in retirement.”
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Why it’s important
The growing number of unclaimed pension pots represents a looming crisis for UK savers, with many risking financial instability in their later years. The Pensions Policy Institute estimates that £31.1B in lost pensions could significantly improve retirees’ savings if recovered. This issue is particularly concerning as millions of savers face increased pressure to delay retirement or adjust their lifestyle expectations.
For those aged 35-54, financial commitments like mortgages and childcare have often taken priority over pension savings, exacerbating concerns about insufficient funds. The average value of £9,500 per lost pension could make a significant difference for individuals if reclaimed. Solutions like pension-finding platforms offer a path to addressing this issue, providing savers with control over their retirement funds. Simplifying the process of tracking down lost pensions is essential to ensure millions of UK adults secure a financially stable retirement.
