Almost a third of UK adults unaware of old pension pots


Almost a third of adults in the UK suspect that they may have a pension pot that they are either unaware of or have not considered before.

Research carried out by Opinium for the fintech company Gretel found that 30 per cent of respondents believe they may be in the dark about some of their pension savings.

Almost three in 10 UK adults also believe they have at least one lost or dormant investment vehicle, bank account, child trust fund or life insurance policy. The average amount estimated to be held in these accounts was £34,600.

If the respondents found lost and forgotten money, 15 per cent said they would use it for everyday living costs, and 13 per cent would use it to pay off debts.

Younger individuals were more inclined to give a portion to charity than any other cohort, with 12 per cent of younger respondents saying they would donate some of their rediscovered savings to the third sector compared with an average of 5 per cent among older workers.

Just 5 per cent of all those questioned would keep the reclaimed money in the account it was in, but say they would monitor it closely to prevent dormancy again.

One in seven would use any reclaimed money to support their everyday living costs, while the majority of respondents would reinvest the money or consolidate it among other existing accounts

Gretel CEO, Duncan Stevens, said the research showed that there was a "golden opportunity" for the financial industry to step up and play a pivotal role in reuniting people with their forgotten assets — as well as helping them do more with them.

"For proactive providers who have supported customer reconnection, we can also see a great opportunity to build on existing brand loyalty," he noted.

He added that financial institutions, advisers, and fintech companies can work together to not only raise awareness about dormant accounts, but also provide the necessary tools and guidance to help individuals reclaim these assets and make the most of them.

By doing so, they can foster greater trust and engagement with their customers, while contributing positively to the financial wellbeing of individuals.


Posted by: Branwell Ford