Report reveals billions of pounds in forgotten pension money

About five million people could be entitled to claim pension funds that they have forgotten about, says a new report.

Many people have had more than one employer at some stages, and this has meant that they have enrolled in several workplace pensions schemes. Research by insurance company Royal London has revealed that millions of people have money in pensions schemes that they have either forgotten about or have no idea how much money they have in the schemes. The research estimates that there could be as much as £800bn invested in pensions schemes from former employers.

The report by Royal London accuses pension schemes of bad communication because they do not keep members informed about their pension options when they move jobs. Steve Webb, Royal London’s director of policy said:

“It is important that scheme members find out what their pensions are worth and take impartial advice as to whether it would be best to leave their pot where it is or transfer it out in exchange for a lump sum. They need to realise that they are giving up a valuable guaranteed payment and should assess the pros and cons carefully.”

The pension freedoms introduced by the government provide flexibility for unlocking cash in pension schemes. Former pensions minister Baroness Altmann also urged people to seek financial advice before they make irreversible decisions about their pensions.

Pension asset management services help people plan their retirement to maximise their income. At Endeavour Financial Planning, we provide pensions advice to residents of the Chester, Liverpool and Wirral areas.

Source used: http://www.express.co.uk/finance/personalfinance/846145/Pension-pots-forgotten-millions-Britain-savings