The glitch is ‘costing you now!’ for pensioners who are missing out on ‘thousands of pounds.’
MILLIONS of Britons will lose out on “tens of thousands of pounds” in retirement because they misplaced or forgot how much money was set aside for them.
Millions of people in the UK are at risk of missing out on a potentially more secure retirement because an estimated £19.4 billion in pension funds have yet to be claimed. In the UK, around 1.6 million pensions have gone unclaimed, resulting in an average loss of £13,000 per person.
This website spoke with James Andrews, a personal finance expert at money.co.uk, about why tracing old pensions is crucial and how to find them.
He outlined the numerous advantages of locating lost and forgotten pensions, including the possibility for financial gain and future accessibility.
People with inactive pension accounts may be missing out on hundreds of pounds in growth over time or paying unnecessary fees.
Furthermore, future access to numerous pension accounts might be problematic, particularly if people have changed jobs or moved homes without notifying each pension provider.
“However, losing track of where your money is housed isn’t only a concern for the future; it might cost you money right now.” That’s because different pensions charge different fees and have different investment strategies.
“If you have money in a scheme with low growth and hefty fees, you could be missing out on tens of thousands of pounds in growth between now and retirement.”
“The good news is that you can transfer pensions, such as combining any previous pots into your current employment one to keep things simple, but only if you remember where all your money is currently and put forth the effort to track it down.”
“However, the sooner you do it, the sooner you may be able to profit from lower fees and possibly better savings growth.”
Some people may find the idea of tracing pensions intimidating, but James stated that there are numerous ways to figure out if they have lost or old pensions using various pension tracing guides.
Another place where people can look for past pensions is in their filing cabinets.
Paper trails or email threads are common in people’s lives. “Brinkwire News Summary.”