Pensions have been a hot topic recently, which has prompted an increase in the number of people who are looking to find out what their pensions are worth. This is something that can be done using our pension calculator or by contacting your pension provider directly. These individuals are also really interested in the damage their pension pots may have sustained because of the current market conditions.
Independent advisors, insurers, the Government and other sources have seen a surge in the number of savers concerned about their retirement wealth. Worryingly a large number are not sure how much they have squirreled away for their old age, and have lost track of their pensions.
It’s just the start
The fact that people have started to ask questions about their retirement provision only marks the start of some hard questions which will need answering.
In the autumn the Government will be launching their auto-enrolment scheme, under which all employees will be signed up to their company’s pension scheme. This will raise many more questions, since research has shown that around 70% of workers have no idea what auto-enrolment actually is.
Aon Hewitt, a human resources company, have estimated that one in every three workers could approach their employer with a host of questions. This may be during the first month of them finding out that deductions are being made from their earnings, which are going towards their pension.
Another issue with people not knowing how much they have saved for their golden years has come from the problem of companies changing their name after the worker changes jobs. Even just frequent job switches can cause people to lose track of their pension pots; often, people don’t even know that they had been saving into a pension. Figures are showing that there is £3 billion in unclaimed personal and workplace pensions.
It goes without saying that many people entering their old age are struggling financially, and by checking if they are able to claim pensions they previously were unaware of, they could stand a better chance of fighting off old age poverty.
Pension Trading Service
Anyone looking to find their lost pension can approach the Pension Trading Service, which is free and run by the Government. Their details can be found through the Directgov website. The service allows those people who have lost track of their pots to find them, even if they do not have the appropriate paperwork or contact details of the provider or employer.
Since the service was set up in 2005 more than 350,000 people have used it, resulting in them receiving an average weekly pension of £16 or a lump sum worth £1,900.
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