I tracked down lost savings pots and boosted my retirement fund by £18k – easy steps you can take to do the same
AN ex-serviceman has revealed how he found £18,000 after tracking down old savings pots.
Robert Sullivan, discovered he had six historical pension pots, now adding a major boost to his retirement fund.
The 46-year-old, who is based in Dorset, spent several years as a serviceman with the British army.
Since leaving, Robert has worked as an electrician and is currently installing EV charging points in homes.
He told The Mirror: “I’ve been in and out the army four different times and I’ve had around 11 contracting jobs since leaving but I’ve not thought too much about my retirement and my pension.
“Although it’s creeping up, it’s still I’d like to think it’s still a long way away. I have always banked on my army pension really, and anything else would’ve been a bonus.”
Millions of people are estimated to have lost significant sums of money in old pension pots.
Recent research by provider PensionBee found around one in ten workers believe they are missing a pension pot worth £10,000 or more – equating to more than three million Brits.
The firm calculated that around £50billion may be lost in as many as 4.8million old pension pots.
These figures are only expected to increase, PensionBee said, with the total number of pension pots set to rise by 130% by 2050, from 106million to 243million in total.
The huge increase in lost pension pots is due to workers switching jobs more frequently than they did in the past.
This means they end up accumulating a number of pension pots and it can be difficult to keep track of them all.
In Robert’s case, he had lost track of his different savings pots over the years, wracking up quite a few from different electrician jobs.
The only communications he had from providers was annual statements.
What is pensions auto-enrolment?
HERE's what you need to know about pensions auto-enrolment:
What is pension auto-enrolment?
Since October 2012, employers have had to enrol their staff into workplace pension schemes as part of a government initiative to get people to save more for retirement.
When does auto-enrolment apply?
You will be automatically enrolled into your work’s pension scheme if you meet the following criteria:
- You aren’t already in a qualifying workplace scheme.
- You are aged at least 22.
- You are below state pension age.
- You earn more than £10,000 a year
- You work in the UK.
How much do I contribute?
There are minimum contributions that you and your employer must pay.
Your minimum contribution applies to anything you earn over £6,240 up to a limit of £50,270 in the current tax year. This includes overtime and bonus payments.
A minimum of 8% must be paid into the pension, with you contributing 5% and your employer paying at least 3%.
What if I have more than one job?
For people with more than one job, each job is treated separately for automatic enrolment purposes.
Each of your employers will check whether you’re eligible to join their pension scheme. If you are, then you’ll be automatically enrolled in that employer’s workplace pension scheme.
Can I opt out?
You can choose to opt out, but you’ll miss out on the contributions from the government and from your employer. If you do choose to opt out you can opt back in later.
TRACKING DOWN OLD POTS
Back in December 2022, Robert reached out to the pension tracing service app Penny.
The platform helps people find their lost pots, and offers plans and pension investment options.
It’s worth noting that Penny charges a 0.75% fee each year on the value of the pension which is called the annual management charge.
There are several services available to help you track them down, including the government’s online Pension Tracing Service (or call 0800 731 0193).
You can also try ringing your old employers’ HR department to ask for the details of your old pensions.
Pension firms including AJ Bell have their own services to locate old pots.
When speaking to a provider, give as much information as possible like the dates you were employed and when you paid into a pension, as well as your National Insurance number.
This will help them track down your pot faster.
Why do pensions go missing?
If you then move jobs, you’re enrolled into a new company pension.
This has created a situation where many workers are juggling multiple pensions and there are concerns millions of Brits may have forgotten about some of their older pots.
If you lose the paperwork for your old schemes and forget which provider they are with, it can be difficult to track them down.
The Government is working on a number of ways to help resolve this problem.
One of those is the beleaguered “pensions dashboard” – a facility where workers will be able to view all of the pension pots they have accumulated over their lifetime in one place.
After years of delays, pension schemes will have to be hooked up to this dashboard by October 31 2026.
The Government also recently confirmed it intends to push ahead with “pot for life” plans – as revealed by The Sun.
These proposals could include workers maintaining one pension provider throughout their career, or having a pension pot that follows them around from job to job.
CONSOLIDATE YOUR POTS
A good way to keep track of your pensions is by combining them into one place.
If you do decide to consolidate your pots, choose a new scheme and ask it to combine your old pots.
Give them the details of your old schemes and they should do the rest of the work for you.
Putting all your money into one modern pension scheme could also mean you pay less in fees.
However, before transferring out of any old schemes, check you won’t lose any benefits you might need.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, previously told The Sun: “Moving all your pensions into one pot can slash the fees you pay and mean you retire with a much larger sum saved.
“However, it’s vital you check that you aren’t losing out on valuable benefits by doing so and seek advice if necessary.”
Top tips to boost your pension pot
DON'T know where to start? Here are some tips from financial provider Aviva on how to get going.
- Understand where you start: Before you consider your plans for tomorrow, you’ll need to understand where you stand today. Look into your current pension savings and research when you’ll be eligible for the state pension, and how much support you’ll receive.
- Take advantage of your workplace pension: All employers are legally required to provide a workplace pension. If you save, your employer will usually have to contribute too.
- Take advantage of online planning tools: Financial providers Aviva and Royal London have tools that give you an idea of what your retirement income will be based on how much you’re saving.
- Find out if your workplace offers advice: Many employers offer sessions with financial advisers to help you plan for your future retirement.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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