The £31bn pension treasure hunt – how to find your lost pensions

There’s a treasure chest worth £31bn sitting somewhere in the UK, and some of it could belong to you. No pirates involved, just lost and forgotten pensions waiting to be found.

Losing track of a pension is easier than you might think. Life moves fast - you change jobs, move house, providers can merge, you get married and change your name.

After each shift, there’s a chance for your pension details to get lost in the shuffle. Over time, providers lose track of you, and you lose track of them.

According to the Pensions Policy Institute, the average lost pension is now worth £9,470. If you’re between 55 and 75, that figure jumps to £13,620. These aren’t pocket change amounts. It could be the difference between scraping by in retirement, or enjoying the golden years with a well-earned holiday and peace of mind.

Here's how you could find your lost pension and make it work harder for you.

This article isn’t personal advice. If you’re not sure what’s right for your circumstances, ask for financial advice.

A pension shake-up is underway

The government hasn’t overlooked this mountain of money – built from millions of small, forgotten pension pots.

Earlier this month, it confirmed it will press ahead with the pension ‘megafund’ reforms, a drive to merge smaller schemes, into more powerful megafunds exceeding £25 billion in value. Over the long-term, this initiative is designed to reduce scattered retirement savings by automatically sweeping pots under £1,000 into these larger funds.

The aim is that bigger funds could mean better returns for savers and more investment flowing back into the UK. Inspired by successful models in Australia and Canada, the reform aims to create large, well-managed pension schemes that benefit both individuals and the broader economy.

With an estimated 3.3 million lost pots, there could be thousands of pounds with your name on it - ready to be claimed. If not yesterday, today is the best time to take control of your pension and transform your retirement prospects.

How to find out if you’ve lost a pension?

Lost pensions don’t have to stay that way.

Finding them is easier than you think – and worth the effort.

Start by listing your job history – think about all the places you’ve worked and cross check for any pension gaps. Don’t forget part-time jobs or short stints.

If you have a personal pension and don’t have any paperwork relating to it, check your bank statements which should show who you were making contributions to.

Once you’ve identified any potential missing pensions, here’s how to track them down:

• The Government’s Pension Tracing Service - it won’t tell you if you have a pension lurking somewhere, but it will help you track down contact details for pension providers. It’s a good starting point if you remember the company, but not the pension details. You can call the Tracing Service on 0800 731 0175 – Monday to Friday, 10am to 3pm.

• Gretel - a free online service that takes the legwork out of the hunt. Once you register your details, it will continuously check its growing database and alert you if it finds something. And it doesn’t stop at pensions, it’ll uncover other forgotten savings and investment accounts too.

• Reach out to former employers or colleagues - if the company is still in operation, a simple telephone call could unlock the door to your forgotten pension – often the quickest route to finding what’s yours.

Consolidate your pensions in one place

Once you’ve tracked down your various pension pots, you might find yourself juggling multiple pots with different providers.

Consolidating into one pot can transform chaos into clarity, giving you better oversight of your total retirement wealth and often more control over how it’s invested.

But look before you leap. It’s important to check for excessive exit fees that could eat into your pot, and ensure that you won’t lose valuable benefits or guarantees in the transfer process.

Bringing all your pensions together could mean lower charges, plus greater choice and control over how your money is invested. These aren’t small considerations – these factors can significantly boost your total pension pot value over time.

The power of compounding

This is where the real magic happens. A lost pension of £9,470 might not sound like a fortune today, but give it time to grow, and the numbers can become far more exciting.

For example, if you track down that lost pot and move it to a provider offering greater investment choice, you can take a more active role in managing your money. If you achieve a 4% annual return over the next 15 years, you’ll add £17,054 to your retirement fund. Not bad for money you’d forgotten existed.

This is an illustration and actual returns will depend on the performance of the investments you choose. Investments can rise and fall in value, so you could get back less than you invest.

But push that return up to 7% annually and you’ll add £26,128. These figures account for a 1% charge, but don’t account for inflation, but they highlight the power of compounding – the longer your money is invested the more it can grow.

So, the sooner you find and take charge of any lost pensions, the sooner you can make sure every pound is working harder for your future.