A third of pension savers worry about forgotten funds

One in three (33 per cent) pension savers worry they have built up funds they have lost or forgotten about after changing jobs, research from iSIPP has found.

The study showed that 40 per cent of pension savers have built up multiple pension funds while switching employers – including more than 5.5 million who have three or more funds.

The research indicated that, proportionately, more than 980,000 believe they have five or more pension pots.

It was also discovered that over a quarter (28 per cent) of respondents said it was difficult to keep track of their retirement savings.

iSIPP reported that part of the issue identified by the research was that workers often do not move funds when they move jobs, as only 40 per cent of those surveyed said they always transferred or consolidated funds when they started a new job.

Additionally, the research found that many people do not know the type of pension fund they have, as 19 per cent of those surveyed admitted to not knowing whether they have a defined contribution, defined benefit, SIPP, or personal pension.

The research also discovered regional differences in the number of pension pots savers had, as 24 per cent of respondents from Northern Ireland reported having multiple pension pots compared to 44 per cent of those surveyed from the east of England.

A regional disparity was also discovered in the proportion of people who worry about forgotten pension pots, as both Wales and Northern Ireland had the lowest proportion of savers worried about forgotten funds (20 per cent) whilst London had the highest percentage (49 per cent).

iSIPP managing director, Hrishi Kulkarni, commented: “It can be difficult to keep track of pensions when you move jobs, and the research makes it clear that millions of us fall into this category.

“Consolidating pensions gives clients better control and offers full oversight of pension fund performance enabling savers to make more informed decisions while also only having to deal with one pension provider on their retirement.”

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