Many individuals may struggle to keep tabs on their pension funds, particularly if they have switched jobs frequently. Research conducted by the Pensions Policy Institute in 2024 suggests that around £31.1 billion is currently unclaimed or lost in pension pots.
John Ferguson, a 32-year-old security worker residing in Edinburgh, discovered £10,000 in missing pension funds by utilizing the Penny app. With the app’s assistance, he identified seven pension pots, two of which he was unaware of previously.
Ferguson expressed his surprise, stating, “Penny was really easy to use. You don’t need to provide much information for them to assist you.” He emphasized the importance of tracking down lost pensions, highlighting that without the Penny app, he may never have uncovered these funds.
The Penny app locates forgotten pension pots by leveraging your National Insurance number and any available details about previous employment or pension providers. Additionally, the app offers the option to consolidate multiple pensions into a single fund, although several considerations must be taken into account before proceeding.
Before transferring plans, it is crucial to check for any fees imposed by your current pension provider, potential loss of benefits, or charges associated with the new provider. Penny, for instance, applies a 0.75% annual charge for its default pension plans. Seeking free pension advice is advisable before making significant decisions regarding retirement funds.
The UK Government provides a free tool called the Pension Tracing Service, aiding individuals in locating lost pensions. This service operates similarly to the Penny app, requiring previous employment information. However, it only provides contact details of pension providers without disclosing investment amounts.
Furthermore, a new pensions dashboard tool is set to launch this year, offering a consolidated view of all pension information in one place. By October 31, 2026, approximately 3,000 providers and schemes are expected to be connected to the dashboard, streamlining pension management for individuals.