One in three 'worry they may have lost pension funds'

More than 5.5 million workers have three or more pension funds.

Consolidating pension funds can reduce fees and save administration time.

Our latest research shows nearly one in three pension savers worry they have built up funds they have lost or forgotten about after changing jobs.

The nationwide study found around two out of five (40%) of pension savers have built up multiple pension funds while switching employers – and that includes more than 5.5 million who have three or more funds.

The research indicates that more than 980,000 believe they have five or more pension pots.

Having multiple funds can mean savers paying more in fees than they need to and spending unnecessary time on administration when it comes to retirement. In cases where people have lost or forgotten about savings it can mean loosing out on the value of pension saving. More than a quarter (28%) of those questioned say it is difficult to keep track of their retirement savings.

Part of the issue identified by the research is that workers often do not move funds when they move jobs – just 40% questioned say they always transfer or consolidate funds when they start a new job.

Our research found many people do not know the type of pension fund they have which can have a major impact on their retirement income. Around a fifth (19%) of those questioned admitted to not knowing whether they have a defined contribution, defined benefit, SIPP, or personal pension.

Here at iSIPP, we enable customers to sign up easily online, to transfer their existing pensions and consolidate funds into one pot, choose their preferred investment funds, and monitor how they are performing 24/7 online, with complete transparency on fees and charges.

Our ‘Create’ option available here, provides over 100 funds classed as standard assets as per the FCA guidelines, with investors having the flexibility to access the investment platform through their iSIPP account.

The free to set up service has no dealing charges or charges to transfer in funds and enables clients to create their own portfolio complementing the existing ‘Choice’ range of Ready-Made funds from world-leading fund managers BlackRock and Schroders.

iSIPP Managing Director Hrishi Kulkarni said: “It can be difficult to keep track of pensions when you move jobs, and the research makes it clear that millions of us fall into this category.

“Consolidating pensions gives clients better control and offers full oversight of pension fund performance enabling savers to make more informed decisions while also only having to deal with one pension provider on their retirement.”

The table below shows the picture across the UK with people in the East of England the most likely to have multiple pension funds built up while Londoners are the most likely to worry about pensions they may have forgotten about.

Our digital pension consolidation service is available to all customers with UK pension funds who are working or have worked in the UK. Our ‘Choice’ range include Ready-Made Portfolios from world-leading fund managers BlackRock and Schroders. BlackRock’s multi-asset, risk-managed MyMap range of funds are available which include an ESG fund and we also provides access to the Schroders’s Shariah compliant fund. Focusing on transparency, the annual trust fee is £200 plus a 0.25% platform services fee. Funds with OCF (Ongoing Charges Figure) start at as low as 0.16%.

*  Study conducted by independent research company Opinium among a nationally representative sample of 2,000 UK adults aged 18-plus between March 1^st and 3^rd 2022 using an online methodology

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The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

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