According to the latest PensionBee study, at least 4.8 million pension pots were deemed "lost" by UK citizens in 2023, and almost ten percent of employees think they may have lost a pension pot worth more than £10,000.

The number of lost pensions might soar as the overall number of pension pots in the UK is predicted to increase by 130% by 2050, from 106 million (as of now) to 243 million. This is a result of younger workers changing jobs more frequently as well as the continued effects of auto-enrollment, which since its implementation in 2012 has greatly expanded workplace participation.
 

"The amount of money lost track of in old pensions is already eye-watering, with over £50 billion already at risk of being left behind," said PensionBee's director of public affairs, Becky O'Connor. "But is set to reach national crisis levels over the coming years, as the number of pots accumulated through work rises and with it, the number of lost pensions."

According to this data, the issue of misplaced pots appears to be becoming worse every year. The government is developing several measures to address it, such as new "pot for life" ideas and pension dashboards.


"Unfortunately, losing track of pensions might lead to a less comfortable retirement for some people. It's crucial to maintain track of previous documentation, policy numbers, employer and pension provider names, and, if you'd rather keep your pensions separate, think about centralizing them.

An increasing number of pensions are being accrued by younger workers.

A survey of 2,000 persons in the UK revealed that, despite having a shorter working history, younger workers (under 35) had accumulated a larger average number of pensions (2.4) than older workers (1.7) and mid-career workers (2.1) (35 to 54 years old).

It is projected that the 18-year-old workforce of today will have an average of five pension pots by the time they reach 68 years old. Over the course of a working lifetime, some persons do, nevertheless, accrue more than twenty distinct pensions.


Head of CEBR's economic insight, Christopher Breen, added: "Compared to earlier generations, younger individuals are changing occupations more frequently.

Even while older workers tend to change jobs less frequently, this will nevertheless result in more pensions being accumulated. This is prior to taking auto-enrollment into consideration.

"In light of this tendency, it is imperative that the government offer the assistance and direction required for individuals to effectively manage their pensions. A robust private pension system is essential for the long-term viability of governmental budgets given the constantly aging population.
 

Compared to mid-career workers (17%) and older workers (8%), who typically had fewer pots to manage, younger people were more likely (25%) to believe they had lost a pension pot. According to PensionBee's data, smaller pots—defined as those valued less than £10, 000—are also more likely to be misplaced (13% of UK workers) than larger ones (9%).