A fifth of UK adults have lost track of multiple pension pots

Pensions-savings-retirement-piggy bank

A fifth of adults in the UK have lost track of one or all of their pension pots, according to research from Aegon.

More than a third think the pensions dashboard will help stop this, however.

The research shows 62 per cent of UK adults have multiple pensions and 39 per cent do not know the total value of their pensions.

The pensions dashboard is set to be launched to consumers in 2019 and providers unveiled a prototype to Government last month.

The dashboard will show a person’s defined contribution, defined benefit and state pension pots all in one place.

Nearly one third (29 per cent) of those surveyed by Aegon think the dashboard will help people save more while 35 per cent of people say the dashboard will help stop savers losing track of their pensions.

Aegon UK pensions head Kate Smith says: “Planning what your retirement will look like without knowing how much money you have to create a retirement income is near impossible. The pension dashboard should greatly simplify the process of finding lost pensions, as well as providing people with an easy way to view all their pension pots, including the state pension, in one place.”

She adds: “However, the dashboard can only be a truly useful tool if all pension schemes and providers are able to adequately digitise and provide the necessary information in a way that the dashboard can display. Otherwise there will be too many missing jigsaw pieces for people to get a clear picture of their savings. The Government must encourage all schemes to ensure their data is ready for the anticipated launch in 2019 and ensure the final product is as useful for customers as it should be.”

The data collected relating to the pensions dashboard was taken from a sample of 2002 adults, while the multiple pension pots data was taken from a sample of 1004 adults.

A Department for Work and Pensions spokesperson said: “We are working closely with the industry on the development of the pensions dashboard to ensure that it will include all the information that consumers need to keep track of their savings.

“The Pension Tracing Service is already available to help people easily track down lost pension pots using just the name of a former employer.”