Pensions Policy Institute research estimates lost pension pots hold £31.1 billion

Research published by the Pensions Policy Institute in 2024 estimated that lost pension pots in the UK contained £31.1 billion in assets¹. The figure covers an estimated 3.3 million pension pots that have become separated from their owners². The estimate is cited by the Pensions Policy Institute and reported by Which? and by TPT Retirement Solutions².

The lost pots sit alongside a much larger stock of small pension savings. There are an estimated 13 million pensions worth less than £1,000 in the system². The average person will have around 11 different jobs over their lifetime, according to the Association of British Insurers². Automatic enrolment, which started in 2012, means workers start a pension when they join an employer, but when they switch companies they often leave their old pension behind².

The government has confirmed it will proceed with proposals to automatically combine the smallest workplace pension pots, those worth £1,000 or less². The plans were announced by pensions minister Torsten Bell². The proposed date for the small pot transfers to begin is 2030². A "multiple default consolidator" system, now officially known as the Small Pots Data Platform, will mean dividing small pots among various nominated companies or "consolidators"². The government says the average worker could be £1,000 better off².

Pension savers will be able to opt out if they want to and consolidate their money in a plan that they choose themselves if they wish². Consolidator schemes will need to meet certain standards to ensure they offer good value for money and can manage people's savings effectively².

Separately, the government's Pension Tracing Service searches a database of over 200,000 pension schemes to find contact details for your provider². You will need the name of an employer or pension provider to use it, but it will not tell you how much your pension is worth². Pension dashboards are expected to be launched to the public in late 2026, although there have already been several delays². Dashboards will allow savers to see all their pensions in one place online, potentially reuniting them with lost retirement savings².

Why it matters for households

The £31.1 billion figure is an estimate of assets already sitting in pots their owners have lost track of, not new money¹. For anyone who has changed jobs several times, the practical effect is that a workplace pension from an earlier employer may still exist and still hold a balance, even where the saver has no current contact with the scheme².

The small pot changes, if they take effect as proposed in 2030, would apply to workplace pots worth £1,000 or less². Savers would be able to opt out and consolidate into a plan of their own choosing instead². The government's estimate that the average worker could be £1,000 better off depends on existing pension arrangements and the charges applied². Some providers charge flat fees, which can gradually reduce the value of smaller pots².

The lost pots estimate and the small pot reforms are separate: the £31.1 billion covers pots already separated from their owners, while the consolidation plans cover pots worth £1,000 or less, whether or not they are currently lost².

What happens next

The proposed date for small pot transfers to begin is 2030². Pension dashboards are expected to be launched to the public in late 2026, although there have already been several delays². A further government proposal, for a "lifetime pot or provider", would see employees choose their preferred pension scheme and then their current employer, as well as any future employers, pay into one retirement fund². No date has been reported for that proposal².

For anyone trying to trace an old scheme, the Pension Tracing Service holds contact details for providers, and the pensions dashboards are intended to show all of a saver's pensions in one place once live².