Losing a pension pot seems unlikely, but it happens often. Unclaimed pensions in the UK now total £26.6 billion, spread across 2.8 million lost pension pots. A new study by the Centre for Economics and Business Research and PensionBee suggests the real number may be higher. They estimate 4.8 million pensions could be lost, worth £50.85 billion.
The UK pension system is fragmented, making lost pensions harder to track. This issue is a major focus of the Labour Party’s “Big Bang” pension reforms. They aim to fix the growing problem of unclaimed pensions in the UK.
How Do People Lose Their Pensions?
Many factors cause pensions to go missing:
- Job-hopping – Workers forget pensions from short-term jobs.
- Lost paperwork – Many don’t keep records of workplace pensions.
- Address changes – Pension providers lose contact with retirees.
- Multiple schemes – Auto-enrollment creates several small pension pots.
A survey of 2,000 UK adults found that 9% of lost pensions are worth £10,000 or more. With more people changing jobs frequently, the issue keeps growing. The total number of pension pots could increase by 130% by 2050, making unclaimed pensions in the UK a bigger concern.
How to Find Your Unclaimed Pension in the UK
If you’ve ever worked in the UK, you might have an unclaimed pension. Here’s how to track it down:
- Check Your Employment History
Review past employers, payslips, and pension statements. - Use the Pension Tracing Service
The UK government’s Pension Tracing Service scans 200,000+ workplace pension schemes. It helps you find providers but won’t show your pension balance. - Update Your Contact Details
Make sure pension providers have your current phone, email, and address. - Consolidate Your Pensions
If you have multiple pensions, merge them to make tracking easier.
Employers Play a Role Too
Employers can help prevent lost pensions. Becky O’Connor, Director of Public Affairs at PensionBee, urges workers to save pension paperwork. Many short-term employees forget about their pensions, especially if they don’t list those jobs on their CVs.
Without proper records, these pensions stay unclaimed and add to the billions in lost retirement savings.
Transfer Your UK Pension to India with QROPS
Finding a lost pension is only the first step. If you live in India, consider transferring it through QROPS (Qualifying Recognised Overseas Pension Scheme). This helps you avoid UK taxes and benefit from India’s investment opportunities.
Why Transfer to a QROPS?
- Tax Savings – Avoid UK inheritance tax and other pension charges.
- No Currency Loss – Receive payouts in Indian Rupees (INR) without conversion fees.
- Higher Returns – Indian fixed-income schemes offer returns up to 10.5%, much higher than UK pensions.
- Estate Planning Benefits – Ensure your full pension goes to your family.
Final Thoughts
Unclaimed pensions in the UK continue to grow. If you’ve ever worked in the UK, act now. Find your pension before it’s lost forever.
For UK expats in India, a QROPS transfer is a smart move. It reduces taxes, boosts returns, and secures your retirement. Want expert help? Contact QROPS Direct today.