Millions of Brits Unaware of Substantial Pension Pots They Could Be Claiming
According to recent reports, potentially millions of Brits are unaware that they’re sitting on pensions worth billions in former employer’s schemes.
New research from Royal London claims that an estimated five million deferred members of defined benefit funds have no idea what their pension would be worth as a lump sum, and that the amounts could be eye-watering.
The insurance firm found that when people transfer their retirement pot, they’re usually offered about 25-30 times the annual value of their pension as a lump sum, but many are left clueless due to a lack of communication from their old scheme provider.
Given the scale of people involved, the capital could equate up to £800billion.
Royal London director of policy Steve Webb said:
“Millions of people are sitting on pension rights built up from a previous employer. What they may not realise is that these pensions are very valuable, often worth a six figure sum. It is important that scheme members find out what their pensions are worth and take impartial advice as to whether it would be best to leave their pot where it is or transfer it out in exchange for a lump sum. They need to realise that they are giving up a valuable guaranteed payment and should assess the pros and cons carefully.”
Former pensions minister Baroness Altmann has recommended seeking impartial advice, to ensure that the decision being made is the right one.
Our advisers are ready and waiting to chat to you about all your pension needs, to help you make the right choice.