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Millions could be lost in forgotten pensions

People who move job frequently could be putting their future pension entitlement at risk, by simply losing track of their accumulated retirement funds.

That’s the message from Stephen Johnson, of SJ Associates, who can assist those people looking to track down and reconnect with their forgotten pension pots. He claims that some may have lost touch with their funds because they have moved address several times and, as a result, do not receive annual statements.

He said: “There could be thousands of people in the North-East who may be unaware that their personal retirement provision could be much greater than they realise. This may be simply because they’ve lost track of the different pensions they have accrued over their working lives.”

Stephen, from Chester-le-Street, believes the UK could be heading for a “lost pensions” crisis with an increasingly mobile workforce leaving millions of pounds worth of dormant pensions in their wake.

SJ Associates is currently offering a free review service to put people back in touch with their lost, or forgotten pensions, and to offer an assessment as to whether these investments are achieving what they should be.

Research undertaken by the Department for Work and Pensions (DWP) has revealed that one in six people do not know where their pension is saved.

Stephen claims that the problem has been exacerbated by the thousands of individuals who contracted out of State Earnings Related Pension Schemes (SERPS) via a personal pension. This was particularly prevalent in the late 1980’s and throughout the 1990’s.

He asks: “Were you one of the millions of people to contract out of SERPS? Contracting out of SERPS was a massive trend in the late eighties and early nineties, in particular, and, as a result, there are literally millions of people who have built up a fund with an Insurance company, having simply signed a form 15-25 years ago.”

“Many can’t even remember doing it and they don’t understand the statements or bonus certificates that they receive each year,” added Stephen. “Many of these funds could be held in poorly performing schemes and riddled with high charges that are eating into the value.”

For further information contact Stephen Johnson on 07885 445480, or email Stephen@sjassociates.co.uk

This was posted in Bdaily's Members' News section by Jonathan Jones .