£64bn of pension money at risk as savers fail to update contact details

Savers could lose track of an estimated £64bn in pension savings due to out of date contact details, with just 37 per cent of savers updating their addresses with their pension provider prior to moving home, research from PensionBee has found.

The survey revealed that whilst 67 per cent of savers understood that by not updating their provider of a change of address they run the risk of losing track of their pension savings, almost a third (32 per cent) of pension savers expected their pension provider to still be able to find and contact them.

PensionBee also pointed out that the pandemic has seen a “flurry” of moving activity, with 40 per cent of respondents stating that they have either moved since the start of the pandemic, or are planning to move in the next year.

However, whilst the majority (70 per cent) acknowledged that they still receive annual statement by post, only 37 per cent had updated their address with their pension provider(s) in advance of moving, with 28 per cent instead planning to update their contact details once their move was complete.

A further 18 per cent of respondents said that while they had not gotten round to updating their pension provider yet, it was on their to-do list, although 15 per cent had not thought about updating their providers at all.

Women showed more awareness of the risks associated with not updating their contact details, however, with 66 per cent agreeing that this could place them at risk of losing their pension saving, compared to 34 per cent of men.

PensionBee CEO, Romi Savova, commented: “It’s extremely shocking and concerning to see just how much UK savers risk losing track of in pension savings.

“As house moves are increasingly popular at the moment, it’s never been more important for savers to ensure that their providers have up-to-date contact details.

“Losing track of hard-earned savings can have a significant impact in later life, and could see millions of people working for far longer than they would otherwise need to, before they can afford to comfortably retire.

“Pensions are a long-term investment so changes in personal details are expected over the years.

"All providers need to offer digital solutions so savers can easily update their personal information and manage their savings in a few clicks, instead of relying on the outdated practices of the past.”

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