Lost Pensions and Retirement
Independent Financial Adviser at Beacon IFA Ltd
£19.4 billion. That’s £19,400,000,000. If you earn £30,000 per year, that would take you 647,000 years to earn it. That’s how much is currently in unclaimed/lost pensions according to the Pensions Policy Institute in 2018 (so it is likely to be even more now). The average is £13,000 per pension pot. According to research conducted by the Association of British Insurers, only 1 in 25 of us will remember to inform our pension providers when we move home. Please let that sink in and tell you family and friends or they will become another statistic. As an IFA (independent financial adviser), I regularly speak to people who are having trouble tracking down lost pensions. There are services out there that can help, including the Government’s pension tracing service https://www.gov.uk/find-pension-contact-details but this is not perfect and won’t solve everyone’s problems. There is only one guaranteed way to avoid this and that is to not lose track of them in the first place. As a shameless plug for my industry, a good financial adviser will be able to help you here as we are the intermediary between you and the pension providers which greatly reduces the chances of losing any pension savings. A common scenario is when pensions from early employment are lost when retirement is the last thing on your mind, and you may not even know whether there was a pension in place or not! It is now a legal requirement for all employers to offer eligible employees a pension scheme so make sure that you and or friends/relatives know where the pension is.
State Pension and Retirement
The state pension is unlikely to maintain the standard of living you are hoping for in retirement (it might, if you are frugal) and so you may be relying on these pensions in order to pay your bills and put food on the table etc. I admit it’s been a while since I was in school (I’m 41) but there certainly wasn’t any mention of pensions and retirement income when I was there. Nor was there any education provided during my previous employment before I became a financial adviser. I suspect this may be the same now so we must educate ourselves. If you had £13,000 in a bag, do you think you would be in danger of losing it? Me neither. I would know where that was every second of every day until I deposited/invested it somewhere!
Here are some great Beacon IFA Ltd case studies
If you would like to chat about getting your pensions in one place or help with tracking any pensions that you think you may have lost, get in touch!
Find out more about pensions and how and IFA can help you!
An IFA can be of so much help and a consultation is free so whatever age you are make sure to get in touch.