Millions of Brits told they could have £13k sitting in a lost pension pot

Millions of people across the UK could be missing out on a hidden pension pot worth around £13,000

Published

A hidden pension pot could be a welcome relief to many families who are struggling amid the cost of living crisis.

Families across the UK are battling against increasing energy bills, food prices, fuel costs and transport bills as inflation hits a 40-year high.

And the Association of British Insurers discovered that around 1.6 million forgotten pension pots are awaiting to be claimed.

A grand total of £20billion is reported to be stashed away in these accounts, meaning on average there is £13,000 hidden in these accounts.

To track down whether you have an eligible account, people have been advised to gather all the documents they may have on the lost account.

Pension pots of around £13,000 are waiting to be claimed
Pension pots of around £13,000 are waiting to be claimed

Annual statements are usually sent to your address, so it's important to refresh your address to avoid missing any key documents.

Those who suspect they may be sitting on a pension pot are advised to contact old employers, who will be to inform those eligible of an account and how much is in it. Old employers will be able to provide the name of the pension providers, making it easier to track down an account.

The government provide a free Pension Tracing Service, enabling anyone to view a database of hundreds of thousands of pension scheme contact details, so you can find your provider.

You can use the service by entering the name of your employer of old pension provider.

The service is dedicating to finding the provider who managed your old company's scheme, leaving you to contact them directly.

To avoid losing your pension pot, Romi Savova of the The Sun advises workers to consolidate old workplace pensions after every job change.

Ms Savova said: "This way their personal pension becomes their 'home' pot that they’ll keep until retirement, and they’ll only ever have to manage this and a current workplace pension".

Maintaining personal details will enable pension providers to contact you about your account.