Pension Tracing Day: experts reveal how to keep track of your pension

Many of us will switch jobs, careers, countries, and pension plans throughout our working life, so it is no surprise that 17%1 of us have reportedly lost track of one or more of our pensions during this time.

2021 – dubbed ‘The Great Year of Resignation’ – has seen 41% of employees reportedly wanting to switch jobs,2 resulting in a 250% increase in people looking for pension advice over the last 12 months,3 according to recent Google search data.

Fortunately, the experts at Blacktower Financial Management have compiled a list of all the things you need to consider when keeping track of your pension during and after your working life, ensuring a smooth transition into retirement later down the line.

Pension Tracing Advice

Tracing old pension pots

If you’re approaching retirement and have lost track of multiple pensions throughout your working life, the UK Government’s Pension Tracing Service is here to help. The service is free and will help you find your old pension pots.

Things you’ll need to trace an old pension are:

Previous employer’s name or pension plan name.
If the pension plan has changed names, try to recall what they were.
The type of business/trade you were in.
An old home address or new address.
What years you were enrolled into the scheme.
Keep records

If possible, whilst you’re still working, try keep track of who your pension is enrolled with.

By law, most pension plans need to send you annual updates on your plan; this is a great way to keep on file the progress of your pension and any changes to your pension plan. This is also the reason why it is so important to update any pension scheme with your new address, should you move home.

We advise you keep a record of any employment history and documents relating to your retirement plan and benefits.

Don’t forget frozen pensions

A frozen pension is simply a workplace pension to which you and your previous employer no longer contribute to. This is usually due to a change in employment or pension plan.

Your money is protected, and you will be able to access it as you enter retirement unless you wish to consolidate your pension plans. In this case you can move the money to a different plan.

Studies have shown that 17% of people forget about old pension plans, so it is important, should you choose not to consolidate, that you keep track of its whereabouts.

Switching employers

When switching job roles, unless both employers are using the same pension scheme, you have two options: you can either move the pension from the previous role into your new scheme, or you can keep them separate. Before deciding where you would like your money to be managed, it is important to consider the performance and administration charges of both pension schemes.

Consolidation your pension

There are many perks to consolidating your pensions, some of which are:

You could save more money for retirement.
You could optimise growth.
It is easier to follow your pension if it is all in one place.
Convenience.