'Great resignation' could leave £113bn of pension savings at risk

Almost two-thirds (63 per cent) of UK workers are thinking about leaving or are in the process of leaving their jobs, putting an estimated £113bn of pension savings at risk, according to PensionBee.

The pension provider noted that more than half (51 per cent) of the respondents who said they were getting ready to make employment changes already had several pensions from previous jobs and were worried that they could lose track of them during the move.

PensionBee found that over two-thirds of job switchers (67 per cent) would like to bring all of their old pensions together into one pot but were worried about the complexity involved, with just 14 per cent of respondents having a plan for their current workplace pension that they felt confident about.

Around a third said they had not given the issue any thought and 66 per cent of the group said they did not know how much they had saved across all of their pension pots.

PensionBee CEO, Romi Savova, commented: “Whilst it’s very encouraging to see workers taking positive action to pursue careers that would make them happier, this could result in a loss of more than £100bn in pension savings if they don’t carefully consider a plan for their existing workplace savings.

“Our research highlights the importance of consumers having access to an easy pension consolidation process in order to avoid losing track of their hard-earned retirement savings when switching jobs. Pension providers must take away the jargon, paperwork, and complexity, and instead simplify pensions using digital technology.

“With frequent job switching now a common practice, savers should have the ability to combine their old pensions in one pot and be able to monitor these savings regularly.”

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