This free service could help you recover a lost pension worth thousands

It’s National Pension Tracing Day on 26 October where we are encouraged to spend the extra hour we get from the clocks going back to track down any lost pensions. It’s an issue that deserves a lot more of a spotlight, with the Pensions Policy Institute estimating there are more than 3 million lost pensions. These will add up to a lot of money that could be being used to bolster our retirements and yet it currently risks being lost.

It’s easily done. We all move between jobs and if you forget to update your contact details when you move house then you could lose track of a pension. It may only be small but time in the investment market means that they can grow over time so you could be missing out on many thousands of pounds.

If you think that you may have lost track of a pension, then it’s well worth giving the government’s Pension Tracing Helpline a call. You can call them on 0800 731 0175 or go online at gov.uk.

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All you will need is the name of your pension provider if you can remember it or the name of the company you worked for. They can’t tell you whether you have a pension with them or not but they can give you contact details so you can get in touch and find out.

A recent Freedom of Information request from Hargeaves Lansdown showed the service had fielded almost 274,000 calls over a period of just under five years. The number would be higher, but the helpline was merged with another Department for Work and Pensions one for a short period of time last year. It shows that there is great demand for tracking down these lost pensions but it’s a drop in the ocean compared to the scale of the problem.Giving the government’s Pension Tracing Helpline a call could help you track down lost pensions and leave you thousands of pounds better off.·MoMo Productions via Getty Images

The incoming Pension Dashboard will make it easier to track down pensions and the government has plans around the consolidation of small pots. All these things will help but are still some way off in the distance. National Pension Tracing Day can give you the nudge you need to track down these pensions sooner rather than later. It’s a quick call that can leave you thousands of pounds better off.

If you are wondering where to start, then make a list of everywhere you have worked and check to see if you have pension paperwork for them. If you don’t and you suspect you had a pension with them then give the helpline a call.

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Once you’ve tracked down your pensions you may wish to consolidate them into one place. This can save you time, admin and even cost. It’s important to compare your old provider with what your new one can offer you. What are the fees like? What kind of investment choice is on offer and what support is available to you?

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Having one overarching view of what you have can transform your retirement planning as you will view one larger pension in a different way to several small ones which you may be tempted to cash in and spend.

However, before you take the plunge it’s really important to check that you won’t be incurring expensive exit fees by transferring out. Another thing to be careful of is the potential to miss out on important benefits such as guaranteed annuity rates which could be lost if the pension is transferred.

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