Research published by the Pensions Policy Institute (PPI) estimates that there are approximately 3 million lost pension pots in the UK containing in the region of £18.7 billion of pension assets in total. The average value of each lost fund is £6,220.
The survey, which was sponsored by the Money and Pensions Service showed that over four out of five (81.88%) of lost pension pots were held by members aged under 55 citing potential reasons including patterns of employment and the impact of automatic enrolment resulting in individuals having multiple small pension pots.
For the first time the survey included some evidence on Defined Benefit (DB) pensions. Results suggested that lost DB entitlements existed and may be valuable enough to affect member outcomes although it was noted improved data would be needed to understand the full scale and impact.
Dr Suzy Morrissey, Deputy Director of the PPI, commented:
‘As the PPI’s new figures show, lost pension pots remain a significant issue for savers, providers, and policymakers. At a time when pensions policy decision-making could particularly impact tomorrow’s retirement adequacy challenges, the PPI is proud to provide an updated examination of this multi-billion pound policy issue potentially affecting millions of individuals.’
Internet link:PPI
