We discovered a lost pension pot worth £82,000 thanks to Martin Lewis’ tip
A COUPLE have described their shock after tracking down a lost pension pot worth £82,000 thanks to a Martin Lewis tip.
The consumer expert’s website is urging Brits to trace old pensions worth potentially tens of thousands of pounds.
Its latest newsletter this week said £27billion is currently going unclaimed in total.
It also shared an email from one MSE reader who recently tracked down an old pension worth £82,000.
The reader said: “Thanks to you promoting lost pensions on your TV show, we contacted the [free] Pension Tracing Service and discovered a lost pension pot worth £82,000.
“We didn’t know where to start looking as it was over 40 years ago and my husband could not remember who it was with as he had lost all paperwork.
“He was shocked to find out the amount.”
Millions of people are now enrolled in workplace pensions automatically through what’s known as auto-enrolment.
Each time you start a new job you start a new pension, which can leave you with several pots of cash that are easily forgotten about.
Even if you were only in a job for a couple of years, small amounts of money can still add up over time.
This it because the money you add into the workplace pension is invested and grows over time.
Below, we reveal how to track down a lost pension and claim some much-needed cash.
How to track down a lost pension pot
First, and if you can, gather all the pension documentation you have, such as paper work or online documents or emails.
You should receive this when you first sign up for a workplace pension.
Pension providers tend to send annual statements by post which you can use to find any crucial contact details too.
If, once trawling through your paperwork, you see any pension providers you don’t recognise, you can get in touch with them.
Ask if they have any information about your pension pot and its value and they should be able to help.
If you can’t find the right paperwork, or you can’t remember who an old pension was with, you can speak to the HR department at your former employer.
Contact them to see if they can help you find out which pension provider administered your workplace scheme.
If you can’t get in touch with a previous employer, or you are trying to hunt down a private pension, you can use the Government’s online Pension Tracing Service.
You can also try calling the service on 0800 731 0193 or +44 (0)191 215 4491 if you are calling from outside the UK.
It’s free to use and lets you search a database of hundreds of thousands of pension schemes to find any contact details.
You enter the name of your employer or old pension provider.
The service tells you who managed your old company’s scheme and its contact details.
What is pensions auto-enrolment?
HERE's what you need to know about pensions auto-enrolment:
What is pension auto-enrolment?
Since October 2012, employers have had to enrol their staff into workplace pension schemes as part of a government initiative to get people to save more for retirement.
When does auto-enrolment apply?
You will be automatically enrolled into your work’s pension scheme if you meet the following criteria:
- You aren’t already in a qualifying workplace scheme.
- You are aged at least 22.
- You are below state pension age.
- You earn more than £10,000 a year
- You work in the UK.
How much do I contribute?
There are minimum contributions that you and your employer must pay.
Your minimum contribution applies to anything you earn over £6,240 up to a limit of £50,270 in the current tax year. This includes overtime and bonus payments.
A minimum of 8% must be paid into the pension, with you contributing 5% and your employer paying at least 3%.
What if I have more than one job?
For people with more than one job, each job is treated separately for automatic enrolment purposes.
Each of your employers will check whether you’re eligible to join their pension scheme. If you are, then you’ll be automatically enrolled in that employer’s workplace pension scheme.
Can I opt out?
You can choose to opt out, but you’ll miss out on the contributions from the government and from your employer. If you do choose to opt out you can opt back in later.
If you’ve tracked down multiple lost pension pots, it can save you money in fees by consolidating them into one.
But beware, by combining the pots into a new scheme, it can mean losing out on benefits from a previous one.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, previously told The Sun: “Moving all your pensions into one pot can slash the fees you pay and mean you retire with a much larger sum saved.
“However, it’s vital you check that you aren’t losing out on valuable benefits by doing so and seek advice if necessary.”
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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