How to find lost pensions as 3 million pots worth £6k left unclaimed

Millions of pension pots with a combined value of £18.7 billion have been separated from their owners, according to new research.

Tracking down savings could make a meaningful difference to your retirement with the average lost pension worth £6,220, showed data from the Pensions Policy Institute (PPI).

People typically lose track of pensions when changing jobs or moving house.

If you've worked for several employers during your career and not moved your pension, chances are that you have a pot that you should check in on - even if you can't yet access it.

You can track down pensions for free.

Here is what you need to know.

Why you should trace a lost pension

It's estimated around 3million people have lost contact with their pensions.

Around 2.5 million lost pots belong to people under 55, which means many people would be unable to withdraw or access the cash.

However, keeping track of your savings and fees you are paying is important and can make a big difference to the long-term value.

How to find a lost pension

You don't need to remember all the details of an old pension scheme to find your pot.

You can start by writing down previous employers you could have had pensions with, including jobs from a long time ago.

Part-time jobs and jobs you only had for a short time could all have enrolled you in a scheme.

The Government's Pension Tracing Service can then help you find contact details for workplace and personal pension schemes.

You can use it online here, but you will need the name of a former employer or pension provider to search.

The service does not tell you whether you personally have a pension with a scheme or how much money it contains.

Instead, it provides contact details so you can get in touch with the provider and ask it to search its records.

You can also contact the Pension Tracing Service by phone on 0800 731 0175. The published opening hours are Monday to Friday, 10am to 3pm.

Once you have found the provider's details, contact it directly and explain that you are trying to trace an old pension.

The more information you can provide, the easier it may be for the provider to match you to its records.

If it finds a pension in your name, ask for an up-to-date statement showing its value, the scheme's charges and the options available to you.

What should you do when you find 'lost' pensions

It can make more sense to move your pensions into current pot - also known as pension consolidation - so that you can have an overview of your savings.

But crucially before moving any money you should review the fees and benefits that come with a pension.

Older pensions may have higher fees than your current savings plan.

However, some pensions may come with income guarantees or benefits that you will lose if you trasnfer out.

You may also have to pay exit fees for transferring out so check these carefully.

It could be worth taking advice if you are not sure about your options.

You can contact pensions specialists through the government-backed Money Helper service for free on 0800 011 3797 .