Four Steps to Locate a Lost Pension: Guidance for Employees

What’s Driving the Rise in Lost Pensions?

The reasons behind this surge are familiar to many HR and finance professionals: employees frequently change jobs, forget to update their pension providers when they move home, or lose track of multiple small pots created through auto-enrolment. The result is billions of pounds sitting idle, money that could make a real difference to future retirement income.

Four Steps to Locate a Lost Pension

Jonathan-Watts-Lay, Director of WEALTH at work ( a leading financial wellbeing, retirement and workplace savings specialist) recommends that employees start with the following actions:

1. List all previous employers – Old payslips, P45s, and CVs can help jog your memory and identify where you might have built up pension benefits.
2. Contact former employers – They can confirm which pension provider was used and provide policy details.
3. Use the Government’s Pension Tracing Service – If employer records are unavailable, visit the Governments Pension Tracking Service. to search for schemes.
4. Contact the pension provider– Once identified, request current statements to confirm the value and details of each pension.

Should Employees Consolidate Their Pensions?

Once lost pensions are found, the next question is whether to consolidate them. For most people with defined contribution (DC) pensions, combining pots into one scheme can make financial management easier and provide better oversight of investment performance.

Jonathan Watts-Lay cautions against transferring defined benefit (DB) schemes, also known as final salary pensions, unless under professional guidance. DB schemes offer a guaranteed income for life, which could be lost upon transfer. If the transfer value exceeds £30,000, individuals are legally required to seek regulated financial advice, typically at their own cost.

Understanding the Risks

Before consolidating pensions, employees must consider potential downsides.

Moving a pension could result in the loss of valuable benefits such as guaranteed annuity rates, protected pension age, or enhanced tax-free cash allowances.

How to Consolidate and What It Costs

To consolidate pensions, individuals should contact their chosen provider, typically their current workplace pension scheme or a private plan. The provider will request details such as policy numbers and names of existing pension providers, then manage the transfer process.

The costs vary depending on the provider and the number of schemes involved, but consolidation can reduce overall fees, as many platforms apply lower charges for larger balances. Employees should review all costs including advice, platform, and investment management fees before making any transfer decisions.

Why Pension Transfers Can Take Time

Pension transfers can take weeks or even months to complete. Some providers still rely on postal documentation rather than secure digital systems, slowing the process.

In addition, new anti-scam regulations introduced in 2021 require providers to perform extra checks before authorising transfers. Transfers may be delayed or blocked if there are potential red flags. Providing complete and accurate information helps ensure a smooth process.

The Employer’s Role: Supporting Financial Wellbeing

Forward-thinking employers are now offering financial education and consolidation services as part of their employee benefits strategy helping staff make informed choices about their financial future. Such initiatives not only improve engagement but also demonstrate a genuine commitment to long-term employee wellbeing and financial security.

Key Takeaway

The £31.1 billion tied up in lost pensions highlights a major challenge for both employees and employers. By raising awareness, offering support, and encouraging proactive pension management, organisations can help their people make the most of their hard-earned savings and improve overall financial wellbeing in the workplace.