February 29, 2024

Employers could boost finances of the over 55s by helping them find lost pensions

With recent research showing the impact of the cost-of-living on people’s finances and work patterns, employers are being offered an easy way to support their employees with free communication tools, offered as part of National Pension Tracing Day on 29 October.

National Pension Tracing Day is a cross-industry campaign created by Punter Southall and backed by Aegon, Aviva, Hargreaves Lansdown, Legal & General, Royal London, Scottish Widows, Smart Pension Standard Life and The People’s Pension.

On National Pension Tracing Day people are encouraged to use the extra hour on the last Sunday of British summertime, when the clocks go back an hour, to check for pensions they may have forgotten about or lost and potentially find thousands of pounds.

 

Research from Ciphr[i]  suggests the continuing cost-of-living crisis is now affecting a greater proportion of employees with two in five working extra hours; more struggling to buy food or pay their bills, and fewer being able to afford to take sick days.

The survey revealed many have turned to their employer for more cost-of-living support, with a third (36%) of men and a quarter (26%) of women having recently requested a pay rise.

An alternative cost-free solution is for employers to encourage workers to join the #GreatPensionTreasureHunt and check if they have pension savings they didn’t know about.

 

It’s estimated one in 20 people have mislaid or forgotten a pension, with an average value of £9,500 – money which could boost the finances of  people 55 or older at what is a challenging time for many.

The amount in pots gathering dust has gone up by over a third to approximately £27bn since 2018, when it was £19bn according to research[ii] carried out last year.

 

Punter Southall’s Alan Morahan said: “We’re asking employers to get on board and join our mission to reunite people with pensions they may have lost contact with, which often happens as a result of moving house or changing jobs.

“It couldn’t be easier. Our step by step guide on the campaign website shows how, in a few clicks or a phone call, employees could have found lost pensions, potentially worth thousands of pounds.

“We’ve also created a free communications toolkit for employers to spread the word. The suite of communications can be used as a whole or individually and includes workplace posters, intranet adverts and videos, plus a ready-made email campaign.

“As the cost-of-living continues to bite encouraging employees to join in could be one of the easiest ways to support staff right now and help them find free money.”

 

Susan, a HR director, of an engineering company, did just that. She used the employer toolkit to help staff go through the steps to trace lost pensions. Two of them found lost pensions, with one of them worth £80,000, which Susan said shows the value of National Pension Tracing Day and is why her company is keen to take part again this year.

Employers can promote the step the step guide to finding a lost pension here. They can download the free communications tool kit here.

 

[i] https://www.ciphr.com/press-releases/two-in-five-employees-are-working-extra-hours-as-cost-of-living-crisis-bites/#:~:text=How%20employees%20are%20being%20affected,worries%20(down%20from%2055%25)

[ii] https://www.pensionspolicyinstitute.org.uk/sponsor-research/research-reports/2022/2022-10-27-briefing-note-134-lost-pensions-2022-what-s-the-scale-and-impact/