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More than one fifth (22 per cent) of savers are unsure where their pensions are held, while a further 16 per cent don’t know, research from Hargreaves Lansdown has found.
The survey found that just under two thirds (62 per cent) of people know where all their pensions are held, raising concerns that some savers could be putting their retirement at risk by losing track of their pension savings altogether.
The problem lessened as savers get older, as 8 per cent of over-55s said they don’t know where all their pensions are held, while just under a fifth (18 per cent) admitted that they weren’t sure.
The problem was "much worse" for younger people, however, as the survey found that 21 per cent of 18-34s don’t know where their pensions are held, while a further 28 per cent are unsure.
Hargreaves Lansdown suggested that this could be because older generations have been less impacted by auto-enrolment and so have fewer pensions to begin with, while others may have decided to keep track to minimise the risk of losing them in the run-up to retirement.
In light of the findings, Hargreaves Lansdown stressed the need for action, with the latest Hargreaves Lansdown Savings and Resilience Barometer also showing that only 39 per cent of households are on track for a moderate retirement income.
Hargreaves Lansdown’s head of retirement analysis, Helen Morrissey, warned that while savers may assume it doesn’t really matter if they lose track of a pension, not keeping track of them could leave savers “thousands of pounds” out of pocket when they reach retirement.
She continued: “The government is looking at how to introduce a lifetime pension whereby people can choose the pension they want their employer to pay contributions into. This will go a long way towards helping people keep track of their pensions, although this will take time to implement.
“In the meantime, there are things you can do to make sure you aren’t losing track of all important pension money.
"Keeping tabs on where we are saving as we go through our working life is an all-important first step.”
If you want a better view of what your future could be, we'll have a chat over a cup of coffee in our Durham office and work out if we can add any value to your financial picture.
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