It has been over a decade since the introduction of pensions auto-enrolment in the UK, yet the recent Great British Retirement Survey by Interactive Investor has revealed that one in four individuals remains unaware of pensions.

Startling statistics reported by The Actuary indicate that 70% of workers are contemplating delaying their retirements and recent data from the UK government’s Office of Budget Responsibility indicates that the number of working-age retirees is now 50,000 below pre-pandemic levels.

Financial planners are advising those worried about their ability to afford retirement to take action. Anyone who has changed jobs frequently or moved residences over the years may be among the three million people in the UK who can bolster their savings by rediscovering forgotten pension pots.

Susan Pringle, managing director of Henderson Loggie Financial planning, said: “With every career move the chances are you start contributing to a new pension scheme, leaving the old one dormant. Even a simple act like moving house without notifying the previous pension provider could result in a disconnect from hard-earned pension savings.

“Last year, the Pensions Policy Institute (PPI) revealed a staggering £26.6 billion lying in unclaimed pension funds. According to PPI estimates, the average amount in each unclaimed pension pot is £9,470.

“These forgotten assets could be the key to enhancing your retirement years, making it crucial to meticulously research the whereabouts of pension funds to reclaim what is rightfully yours. When deciding on a retirement strategy, having a complete picture transforms the decision-making process.”

Timing is of the essence, and delaying taking control until close to retirement age could result in a frantic last-minute scramble, causing individuals to miss out on transitioning to more advantageous pension schemes.

Some of these forgotten pots may bear higher fees or have underperformed. Consolidating smaller pensions into more lucrative or lower-fee schemes can simplify management, aligning savings more closely with retirement objectives.

However, while the prospect of consolidation is appealing, existing schemes may have their own merits, or individuals could lose valuable benefits during the transfer. Seeking professional counsel before making these decisions is advisable.

Ms Pringle said: “The average person might have as many as 12 jobs during their lifetime so the first step to reclaiming what is rightfully yours is to draft a comprehensive list of all the employers you’ve worked for, noting whether you were affiliated with a pension scheme.

“Any job undertaken post-February 2018 should be associated with a workplace pension thanks to the rules on auto-enrolment.”

Once the list is complete, the next step is unearthing contact information for the relevant pension providers. The initial point of contact could be previous employers. If this route proves fruitless, the government’s Pension Tracing Service can provide the necessary information.

Ms Pringle added: “It’s important to note that while the Pension Tracing Service discloses contact details, it doesn’t offer insights into whether individuals have a pension with that provider or its value.

“The responsibility lies with you to initiate contact with the provider to find the details needed to access your long-lost savings.

“A knowledgeable financial planner can guide you through the pensions maze and help consolidate their assets. It might be beneficial to seek one with a good understanding of local employers and the public sector pensions landscape.’

“There’s nothing more satisfying than hunting down hidden wealth. Reclaiming lost pension pots allows you to take full control of your retirement funds, ensuring you don’t miss out on the fruits of your labour.”