It’s surprisingly easy to lose track of pension pots. For those who have a nagging feeling they’ve misplaced details of an old pension, there’s good news! Aviva has launched a new, completely free service aimed at helping savers find and manage these elusive funds.
It’s a more common issue than many might think. Current estimates suggest that there are about 2.8 million lost pension pots in the UK, collectively worth a staggering £26.6 billion. This is a significant increase, shooting up by 73% in just the last four years. Often, these pensions become forgotten when people move homes and fail to update their new contact details with their pension providers.
The average value of a lost pension pot stands at around £9,500. This is no small sum, and recovering these funds can be crucial in ensuring financial comfort during retirement.
How Can Aviva Help?
Aviva’s innovative “Find and Combine” service is designed to do more than just locate your pensions. Unlike many other free services, including the official government one (which you can find at gov.uk/find-pension-contact-details), Aviva’s service also checks whether the found pensions have any special benefits that should be safeguarded.
Why Consider Combining Pensions?
Many people choose to consolidate their various pensions into one pot. This is usually done to simplify management and keep better track of retirement savings. However, it’s not always the best route. Some pensions come with perks like loyalty bonuses or life assurance, which could be forfeited upon consolidation. Furthermore, there might be fees for transferring pensions, which could make consolidation less attractive financially.
A Comprehensive Online Report
Aviva understands these complexities and includes all the necessary details in an online pension report provided at the end of the search. This ensures that savers can make informed decisions without any pressure to transfer or combine their pensions with Aviva, even after using the service.
Words of Wisdom
Joanne Phillips from Aviva emphasises the importance of this opportunity, stating, “Investing time today to trace your lost pension could be the best investment you make all year.” It’s a call to action for anyone who might have lost track of their pension savings to take a moment and explore this free service.