£800 Billion in Unknown Pensions in 2017

Yes you just read that right. There are millions of people in Britain that don't know that they are sitting on pensions collectively in excess of £800 billion. This would be from former employers where they were part of a final salary scheme. This is based on new research which has just been released.

It reports that there are around five million deferred members who were part of defined benefit funds, these people have money in pension schemes with their former employers and this means that they have absolutely how much their pension would be worth to them when given in one lump sum.

This showcases a sheer lack in communication between the person and their old pension scheme provider. When you get a new job and transfer your pension scheme to your own retirement pot you are often offered in the region of £158,000 to £190,000 or it could be up to thirty times the annual value of the pension as one lump sum. But this means that the value of pension promises due to these members is in the region of £800 billion.

Pensions from Previous Employers

What this actually means is that there are millions of people throughout the United Kingdom who have pension rights from their previous employer. These pensions are valuable and could be in the region of six figures. It is essential that if you do have a pension, you identify what its worth and ensure you get the best advice from a financial advisor on whether to leave it where it is or to move it.

There are so many people who are taking full advantage of the pensions freedoms so that they can get their hands on the cash easily. This is a very serious concern and people need to get the financial advise first before touching their pension pots. Pension freedoms is irreversible, so ensure you get the best advice before making any decisions.

Professional Advice

It is recommended to seek professional financial advise from an advisor who is unbiased and focused on helping you make the right decision. No decision regarding your pension should ever be taken lightly.

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