Nest offers free pension tracking service
To assist its customers in locating pension funds accumulated from prior employment, Nest has introduced a complimentary pension tracking tool. This initiative follows reports highlighting the UK’s significant issue of forgotten retirement savings, with the Pensions Policy Institute (PPI) estimating that roughly 3 million pots, totaling £18.7 billion, remain untracked.
The average person is expected to have 11 jobs during their lifetime, making it increasingly difficult for savers to keep track of their retirement savings. Changing employers, moving home, and losing track of paperwork can all contribute to the problem of lost pension pots.
Nest’s research found that one in four members either did not know how many pension pots they had or knew they had more than one but were unsure of the total. Having all their pensions in one place was the most common reason members gave for transferring their savings, with almost a third citing concerns about losing track of multiple pensions as a key motivation.
The new pension finder service, developed in partnership with Pension Lab, allows members to search for pension savings from previous employment through their secure online Nest account. Members can provide details of former employers or other pension providers where they believe they may hold savings, and the service helps locate any existing pension pots.
The service is free to use and will not automatically transfer any pension savings, allowing members to review their options before deciding whether to take further action. Perera-Betts stressed that the service was intended to give members greater visibility and control over their retirement savings, rather than encouraging automatic consolidation.
For people who have worked multiple jobs, the pension finder service can be a valuable tool in tracking down lost pension savings. By providing a simple and secure way to locate existing pension pots, Nest is helping its members take control of their retirement savings. The average value of a lost pension pot is approximately £6,000, making it a significant issue for individuals who are trying to plan for their retirement.
