The vast majority (88 per cent) of individuals who had changed jobs were not informed or did not recall being informed about their pension during their exit interviews, a survey from Penny has revealed.

The firm suggested this was a "major contributor" to the high number of lost pension pots in the UK.

The survey also highlighted broader dissatisfaction with how workplace pensions were communicated.

When respondents were asked, “Do you think your previous employer did enough to inform you about your workplace pension?” 50 per cent of respondents said their employer did nothing, 33 per cent felt they could have done much more, and only 17 per cent believed their employer covered even the basics.

Penny suggested these findings point to a general lack of employer engagement in pensions, which can leave employees "under-informed and disconnected" from their retirement savings.

The firm added that this communication failure affects millions of workers who may unknowingly leave behind valuable retirement savings when changing jobs.

According to a study by the Pensions Policy Institute (PPI), there are approximately 3.3 million lost pension pots in the UK, collectively worth an estimated £31 billion.

“Many people risk missing out on thousands in retirement savings,” said Penny head of pensions, David Henderson.

“According to the Association of British Insurers (ABI), the average lost pension pot is worth £9,470, rising to £13,620 among those aged 55 to 75 — meaning individuals could be leaving behind significant amounts when changing jobs,” he continued.

“Our survey shows that employers have a critical role to play in ensuring pensions are not overlooked during job transitions.

"At Penny, we’re committed to helping people reclaim their lost pensions and feel more engaged with their retirement planning,” concluded Henderson.

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