Money Box
Lost Pensions and Student Loans
Dec 7, 2024
Hidden among the complexities of UK financial systems are over 3 million lost pension pots, totaling a staggering £30 billion. New research reveals a 17% rise in these unclaimed funds, prompting government initiatives to simplify tracking. Meanwhile, hundreds of thousands of former students are urged to check for potential refunds on overpaid loans, with up to £184 million available for reclamation. The conversation also highlights changes in universal credit repayments, promising to ease the burden for 1.2 million households.
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Quick takeaways
- The rise in lost pension pots highlights the urgent need for better awareness and management of multiple pension accounts among individuals.
- Former university students are encouraged to check for potential refunds on student loan overpayments, with nearly £200 million available for reclamation.
Deep dives
The Challenge of Lost Pension Pots
There are over 3 million lost pension pots in the UK, totaling around £30 billion, with the average value of a lost pot being nearly £9,500. Many individuals struggle to keep track of their pensions, especially when changing jobs or addresses, which complicates the tracing process for pension providers. The increase in lost pots, which has risen more than 17% in the last two years, is attributed to automatic enrollment policies that enroll employees into new pension schemes without consolidating previous pots. This situation emphasizes the need for better awareness and guidance on managing multiple pension accounts to prevent future losses.
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