This might seem like a rare occurrence but fact is that an estimated 5 million people in the UK could be missing out on some income when they retire simply because they couldn’t keep track of their pension savings.
According to a recent survey conducted by Charity Age UK, almost 25% of adults seeking retirement ended up overlooking at least one pension in their calculations which added to their confusion when the final numbers didn’t match up.
The reason for this miscalculation is simple. Most people don’t work for the same employer for the rest of their life. They usually switch from one employer to the next over the years. On average, a UK retiree goes through five to seven employers during their lifetime and since each employer offers his own pension plan, there are potentially five to seven pension schemes that need to be kept track of; something that can easily be overlooked.
So if you happen to be one of those people who think that their pension money is not fully accounted for, then take the following steps to get everything in order.
Dust Out That Filing Cabinet – Go through all your paperwork. Leave no page unturned. Every pension scheme comes with paperwork that you have to sign before it gets processed. There has to be a recollection of it. When checking paperwork, also check that they have your correct address listed. If you spot an old address, write to them asking to update your information and send over the necessary paperwork at the correct address.
Contact Your Previous Employers – All employers are bound by law to keep pension information of all their employees and ex-employee in their database. Contact them and ask for details of the pension provider and the follow up with them appropriately.
Online Pension Tracking Service – The government offers an online pension tracking service. It will ask for your national insurance number and the name of the employer you worked for and then outline whatever data it is. It is a fairly reliable system. Many people have successfully identified and recovered their lost pension by using this tracking service. It must be mentioned that this service is also available by phone.
Don’t let a simple miscalculation or misplacement of pension paperwork affect your retirement income. Keep a track of all the paperwork. Should you find anything missing see that it is sorted by using any of the above mentioned tips. Contact a certified annuity expert for more information.