Pension Tracing

What is pension tracing? How does it work?

In general, this is around pensions that people have lost track of. In an ideal world, you wouldn’t need to trace any pensions because you’d know where they were.

But because people are changing jobs so frequently now, it’s possible to have contributed to a pension in previous employment and not kept up with where that pension is.

The process of pension tracing is about trying to find that, to add that into your financial planning for retirement.

How can I find my old pension?

Various bits of information are very useful to have. The first thing is to think about all the places that you have worked and when.

If you don’t know the particular pension provider, knowing the employer can be a big help. The internet is your friend for finding information out, and you can also approach HMRC.

If you’re still not sure, book a discovery call with one of the wealth advisors at McKendry Dunion Financial, and we can help you navigate through that search.

What information do I need to find unclaimed pensions? Can I find my pensions using my national insurance number?

Your national insurance number is very useful – that definitely helps. If you’re approaching HMRC, it will be critical information.

Knowing who you worked for and when is helpful too. If you’ve got any old payslips from previous employment, check those to see if there’s a pension deduction. They might actually tell you who the pension provider was.

As much information as you can get is useful. Often, if people have left pensions for a long time, the provider might have an old address for you. It’s one of the last things people think of updating with a new address.

Dates, your national insurance number and your date of birth will make a big difference in finding old pensions.

What is a pension review? Is it necessary for all pensions?

A pension review is looking at what you have, the value, any benefits and conditions associated with the pension, and where the funds are invested.

Is it necessary for all pensions? Technically no, but if you’re starting to consider retirement planning, it’s worth having these reviewed. Most people know that they’ve got a pension with a particular provider, but the information they get might not make much sense to them.

A review looks at your circumstances now, and what you’re hoping to achieve in retirement in terms of income levels and retirement age. We then check whether your pensions are relevant to those objectives. Reviewing them makes a huge difference.

They say if you’re flying to New York and you’re one degree off, you end up in Florida. Pensions are a bit like that. If you’ve invested money 20 years ago, there’s no telling whether that pension is appropriate for you at this point, so it’s well worth getting that expert view.

Can I lose my pension in the UK?

Like a set of keys, of course you can lose it. If you lose track of that pension, it’s not there for you to add into the mix. That’s why it’s important to do that tracing.

If you’re younger and starting out on your employment journey, take notice of whether you’re contributing to a pension and who holds that fund. It’s yours and it will always be there – but if you don’t know about it, you can’t use it in retirement.

What happens when a person dies and the pension is unclaimed?

Usually when somebody dies, a solicitor will be involved in winding up their estate, which consists of all the different assets they have. That could include property, pensions, cash, and anything else that belongs to them.

Depending on whether or not they’ve left a Will, that estate will be wound up as per the legal obligations for the solicitor.

That’s very personal and dependent on whether there’s a Will in place, so getting proper advice is important. But anybody with a pension or a property should make sure that they have a Will in place – so when you’re no longer here, everybody knows what your wishes are.

What are my options when I find an old unclaimed pension?

It depends what you’ve found. Certainly, it’s a good time to seek advice as to what you could or should do with it. It really does come down to individual circumstances in terms of the options and the consequences of your actions.

How can a financial advisor help? Is there anything else you’d like to add?

With pensions and any financial advice, there’s no substitute for having an expert look at your circumstances and the products you have.

When people are in their 20s, 30s and 40s, you’re in the ‘accumulation’ phase. The advice is to get as much into your pension as possible in these years. Once you start trying to flesh out what your retirement looks like, that’s when a financial advisor comes into their own.

But if you’re setting up a new pension or you want some clarity on that accumulation phase, there’s a role for an advisor there too. At McKendry Dunion, we offer a complimentary one-hour discovery call, to assess your circumstances and decide if there’s something that we can do to help you. We explain all terms and conditions for that.

Sometimes we end those calls by encouraging you to just keep doing what you’re doing, but it certainly doesn’t hurt to check in.

Key Takeaways:

• Pension tracing is necessary to find pensions you have lost track of due to frequent job changes, ensuring they are included in your retirement financial planning.
• Key information needed to trace an old pension includes your National Insurance number, the names of previous employers, and dates of employment.
• A pension review is highly recommended when considering retirement, as it checks if your existing pension’s value, benefits, and investments are appropriate for your current circumstances and retirement goals.
• Though your pension will always exist, if you lose track of it, you cannot use it in retirement, making it important to note the pension provider early in your employment journey.
• Financial advisors offer an expert view that is valuable for tracing lost pensions, clarifying the accumulation phase, and helping you define your retirement income and age objectives.