The lost pension pot epidemic is set to “explode” in the coming years as the generational pension gap continues to widen, research from Raindrop has suggested.

Less than a fifth (17 per cent) of young people aged 18-34 know exactly where all their pension pots are, revealed the pension-finding platform.

Nearly a fifth (19 per cent) of 18–34-year-olds also admitted that they have no idea how much they have saved for retirement - almost double the figure for older people over 55 (10 per cent).

Raindrop’s figures indicated that this pension gap will continue to widen as younger people struggle to save for retirement and risk losing pension pots as they progress in their careers.

Younger workers will likely accumulate more pension pots over the coming years, which risks worsening the issue of lost pots.

Three in ten (30 per cent) people aged 18-34 have already had three or more jobs in their careers and are therefore likely to have multiple pension pots, while a fifth (17 per cent) plan to move to new roles every few years, compared to just 2 per cent of workers aged over 55.

The government plans to launch a pension dashboard in October 2026 to enable people to locate lost pots. A fifth (19 per cent) of young people plan to use this pension-finding service but don’t want to wait until then.

A similar proportion (18 per cent) said they would rather use a solution offered by their bank or pension provider than the government’s platform.

Raindrop co-founder and CCO, Vivan Shridharani, said young people face a “future pensions crisis”, with billions of pounds already wasting away in lost pots.

Shridharani stated: “Millions of young savers risk losing track of pension savings as they increasingly switch roles every few years and start paying into new pots.

"The traditional career path of a company for life and just one pension is virtually extinct – the number of lost pension pots is accelerating partly due to the more flexible and diverse career choices of younger employees.

“It is vital that people take control of their retirement savings - however, tracking down old pots is often hugely complicated and time-consuming. Pension-finding solutions can play a key role in solving the lost pots crisis, supporting with consolidation and helping people achieve the retirement they want.”

Recent Pensions Policy Institute (PPI) research revealed that £31.1bn is estimated to sit in lost pension pots. There are almost 3.3 million lost pots in the UK, with an average value of nearly £9,500.

---