The UK has £31,100,000,000 in unclaimed, inactive or lost pension pots.
This adds up to some 33 million pensions, averaging £9,470 each. And for those aged 55-75 the average value was even higher – £13,620.
Just because you’re an expat living overseas, doesn’t mean your UK pension is lost.
A little detective work, can help expats track down old UK pensions.
Step 1: Where to get started?
Make a list of all the place you have worked.
Even if you weren’t there for long, it’s worthwhile to check. Because small pension benefits, can grow into significant sums over time.
Once you’ve got your list, you can cross an employer off it if:
- You’re certain you didn’t have a pension set up there.
- Your pension contributions were refunded to you, when you left.
It’s possible your pension contributions were refunded, if at the time of leaving, you were under 26, and worked there for less than 5 years.
Step 2: Checking your old paperwork.
If you have any old paperwork lying around, it’s worth checking to find the following details:
- Pension provider name
- Scheme name (often related to a specific employer or group pension)
- Member/policy/plan number (for your individual pension)
If you’ve only got part of the information above, that’s ok. It will still give you a starting point to track things down (see more in Step 4).
Step 3: Use the government’s free Pension Tracing Service
If you can’t find any old paperwork related to your pension, the government’s free pension tracing service can help.
This contains a list of pension providers used by different employers over the years.
You can search using the name of your employer, and even if the company has merged or closed, there will likely be a record.
You’ll then receive the details for all pension providers used by that company, giving you a starting point to contact potential pension providers.
Step 4: Contacting your old pension provider.
Once you’ve got the details of your old pension providers, it’s time to get in touch. If don’t know your specific pension details, providing the following will help them track down your pension:
- National Insurance Number
- Previous names & addresses
- The dates you worked for the company
It’s possible your pension scheme may have been transferred to a different provider, or your old pension provider has merged with another. However they’ll have a record of who you need to contact.
Step 5: What to do once you’ve found your old pensions?
If you have a number of different pensions, spread across different pension providers, it can make sense to consolidate your pensions into once place.
This will help ensure they don’t get lost in the future, but also make them easier to manage.
By consolidating your pensions, you can have a coordinated investment strategy to support your retirement, and it may even lower the charges you’re paying.
Of course, before transferring, it’s important to check there aren’t any important benefits you may lose. Things like:
- Guaranteed minimum pensions
- Guaranteed annuity rates
- Scheme specific protected tax-free lump sums
- Guaranteed investment returns
You should also check your pension doesn’t contain a lifestyle investment strategy. These default your pensions into low-growth assets as you approach retirement.
Lifestyle strategies have a lot of negative press in recent years, as they’ve often resulted in pensions receiving far less, than they could have if their pensions kept growing.
Even the UK regulator, the FCA, has published findings that lifestyle strategies are inappropriate for most pensioners.
Looking for help to manage your UK pension whilst overseas?
Are you an expat with a pension worth over £150,000? Arrange your complimentary initial consultation today.
