Do you have a pension you don’t know about?

One in every five Irish adults suspects they've lost track of at least one pension pot altogether 

Hidden treasure: Estimates put the value of unclaimed pensions in Ireland at €500 million, though – given recent gains in the stockmarket – that figure could be as high as €1 billion.

Hard to imagine a situation where you’d misplace a pension pot, but that’s the reality for a sizeable chunk of the population.

Estimates put the value of unclaimed pensions in Ireland at €500 million, though – given recent gains in the stockmarket – that figure could be as high as €1 billion.

Just over one in four adults either lack full details of their workplace pension savings or suspect they've lost track of at least one pension pot altogether. That’s according to new research from Royal London Ireland.

The issue is particularly pronounced among those aged 35 to 54. Nearly a third of adults in this age group are at sea when it comes to their pension.

Stark socio-economic differences also emerge from the research, with half of all C2DE respondents saying they either do not have or do not believe they have any workplace pension at all, compared with just 13% of ABC1 respondents.

The research also explored what people would do if they discovered a forgotten pension worth between €5,000 and €10,000. More than one-third of those asked said they would consolidate it into their main pension, while 33% said they would cash it out if at all possible. A further 21% said they would simply leave it where it is.

Mark Reilly of Royal London Ireland points out that there is still a clear lack of awareness and confidence among many people when it comes to their retirement savings.

“There is still a sizeable group who either do not have full visibility of their pension arrangements or may have lost track of older pension pots entirely.

“The gaps across gender, age and socioeconomic groups are also striking. Women, middle-aged workers and lower-income households appear less confident about their pension position.” 

He points out too that because people are changing jobs more frequently than in the past, pension savings can easily become spread across multiple schemes over time. So it’s not inconceivable that you might lose track of what’s stashed where.

Mr Reilly says: “Even relatively small pension pots can grow substantially over the long term, which is why it is important that people regularly review their pensions, keep their details up to date and understand the options available to them.” 

When asked what they would do if they discovered a forgotten pension worth between €5,000 and €10,000, 11% said they would not know what to do with the money. Younger adults were significantly more uncertain, with just over one in five 18- to 24-year-olds saying they wouldn't know what action to take, compared to just 5% of those over 55.

Understandably, cash-out intentions were highest among younger workers and those closest to retirement: four in ten people aged 25 to 34 said they would cash out a forgotten pension, followed by 37% of those over 55.

Income levels also shaped responses. Higher earners were far more likely to consolidate a forgotten pension into their main retirement savings plan, with 41% of ABC1 respondents choosing this option compared to just 26% of C2DE respondents. Lower income groups were also more likely to say they wouldn't know what to do with the money, and were more likely to cash it out if possible.

Mark Reilly says that these findings suggest that many younger adults still view pensions as something distant or difficult to engage with rather than as an important long-term savings tool.

“This is particularly concerning,” he says, “given the value of starting pension contributions early in order to maximise the benefits of compound growth and tax relief over time. 

“With age and experience, people often become more familiar and confident when it comes to managing their pensions. Just 5% of over-55s said they would not know what to do with a forgotten pension, compared to more than one in five 18 to 24-year-olds.” 

While auto-enrolment and higher levels of pension participation are positive developments, it is equally important that people understand where their pensions are held, how they work and the long-term value of keeping retirement savings invested.

“Starting pension contributions early,” says Mr. O’Reilly, “and staying engaged with retirement savings can make a significant difference to financial outcomes later in life. It is why we always recommend people get impartial advice from a financial broker. They are best placed to make sure people’s pensions are suitable for their circumstances and optimised to achieve their financial goals.” 

If you think you have lost track of a pension, don’t despair. Just because the paperwork has disappeared doesn’t mean your entitlement has.

Start by making a list of all your old employers, with particular emphasis on those who you think may have made pension deductions. It’s also worthwhile going back through any records you’ve kept. Keep an eye out for names like Irish Life, Zurich, Aviva, New Ireland, Standard Life/Royal London, or references to an occupational pension scheme. Old annual pension statements are particularly useful.

Contact your former employers’ payroll departments. Ask them if there is a pension scheme of which you were a member, and who the current administrator/provider is. The employer should be able to point you towards the scheme administrator or trustees.

Gather as much of the following as you can: your former employer's name, the dates you worked there, any old pension correspondence, payslips or P45s or P60s. Has your name changed since you worked there? Can you remember the name of anyone you dealt with at the time? All of this will help you track down any missing funds.

If the company has disappeared or changed hands, don't give up. Pension schemes and providers have undergone numerous mergers and consolidations down through the years. The pension may now be administered by a completely different company from the one you remember.

There are also commercial services in Ireland which will trace your pension for you. For example, Findapension.ie says it contacts previous employers, trustees and pension providers on behalf of clients.

But if you hit a dead end in the search, get in touch with the Pensions Authority before you decide to pay a third party. While the authority won't necessarily be able to locate an individual pension for you, they can deal with pension queries and point you in the right direction. Their contact number is 01 613 1900 and their email is [e-mail].