Nearly one in five (19 per cent) UK adults felt certain they have lost or probably lost a pension pot, equating to around 8.8 million people, analysis by the Centre for Economics and Business Research, on behalf of PensionBee, has found.

Ahead of National Pension Tracing Day, PensionBee said that the number of lost pensions could “skyrocket”, as the total number of UK pension pots is expected to rise 130 per cent from 106 million to 243 million by 2050.

The consultancy explained this was due to more frequent job switching among younger workers and due to auto-enrolment, which has "significantly" increased workplace participation since its introduction in 2012. 

The analysis found that preventing lost pension pots was a key motivator for pension consolidation, with 17 per cent of respondents saying this.

However, this was a less recognised benefit than potential cost savings (24 per cent) and easier management (30 per cent).

Furthermore, one in five savers (20 per cent) said that they would not be motivated to consolidate their pensions.

The analysis also revealed a difference between the age of workers and enthusiasm to consolidate, with older workers more likely (39 per cent) to express no motivation to consolidate than mid-career workers (12 per cent) or young workers (6 per cent).

Younger workers were much more likely (22 per cent) to be motivated by more flexibility in managing their pension when entering retirement, compared to mid-career (12 per cent) or older workers (6 per cent).

The analysis also pointed out that younger workers were inclined (13 per cent) to emphasise value alignment as a key motivation for consolidation, as opposed to other age groups, mid-career (7 per cent) and older workers (2 per cent).

Despite this, PensionBee said “significant” barriers to consolidation persist, with almost one in five (19 per cent) expressing that they need more information to make informed decisions about consolidation.

Meanwhile, 15 per cent of respondents voiced concerns about exit fees, which the consultancy said were increasingly rare in modern pension funds, while 6 per cent of respondents were entirely unaware of pension pot consolidation.

Commenting on the findings, PensionBee director of public affairs, Becky O’Connor, said: “Losing track of hard-earned pension savings is unfortunately more common than many savers realise.

“Missing savings can have a significant impact later in life, potentially forcing millions to work longer than necessary to afford a comfortable retirement."

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