Pension schemes were meant to start connecting to the pension dashboard digital architecture this year on a phased basis, but technical snags put this on hold. Now all schemes have to connect by 31 October 2026, with connection dates to be set out in guidance – which still has not been published. And there’s uncertainty about when pension dashboards will ‘go live’ and be accessible to the public.
National Pensions Tracing Day, created by Punter Southall and supported by pension providers including Aegon, reveals that in the UK there is an estimated 2.8 million lost or forgotten pension pots worth on average around £9,500 each.
This collectively amounts to £26.6 billion which Aegon says is ‘a scandal’ and urges the dashboard timetable to be given a renewed focus by all.
Kate Smith, Head of Pensions at Aegon, commented: “National Pensions Tracing Day is a vital initiative to help people find their lost or forgotten pension pots. We are calling on the UK Government to deliver the guidance needed by pension providers to help deliver the long-promised UK pension dashboard. The pension dashboard will enable people to see all their pensions online, securely, in one place. Once up and running, people should never again lose track of their old pensions.
“The £26.6 billion scandal of lost pensions must become a thing of the past, every penny saved counts, particularly as families struggle through the cost-of-living crisis.
“In the meantime, the industry can look to further help workers get into the habit of taking their pension to their new employer’s workplace scheme as they move jobs. It’s all too easy to undervalue or lose track of small pension pots, combining them into a workplace pension scheme not only makes them easier to manage, but also shines the light on how much has been saved.”
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