Keeping track of pensions is notoriously challenging and the The DWP system – currently in development – set to help is the Pensions Dashboard, which will allow Brits to keep all of their different pension pots together in one place
The Department for Work and Pensions (DWP) is developing a new system that could boost retirement savings by an average of around £9,500.
Keeping track of pensions is notoriously challenging, with the average worker accumulating 11 different pension pots over their lifetime. The DWP system – currently in development – set to help is the Pensions Dashboard, which will allow Brits to keep all of their different pension pots together in one place.
This means people will be able to see their savings plans and, more importantly, keep track of them all. Due to auto-enrolment for workplace pensions, workers could start multiple different pots throughout their working life and if they are not aware of them, there is more risk of them being lost.
Current trends show that more people are switching jobs in their careers, so the issue of lost pensions is expected to get worse if nothing is done. So the dashboard aims to address this. A 2024 report by the Pension Policy Institute suggests that 3.3million pension pots have been lost, with an average value of £9,470 – for people aged 55 to 75, this figure rises to £13,620 per pension.
When fully rolled out, the dashboard is planned to include personal pensions, workplace pensions, and the state pension. It will also ensure that no pensions are missing by requiring all pension providers to register with the service.
The programme was first proposed in 2016, however, a series of delays have continued to push it back. Under the new timetable published by the DWP in March last year, large pension schemes will start joining in April 2025, with medium-sized schemes following in 2026. All providers must be connected by October 31, 2026.
The previous Conservative government decided this, and Labour Pensions Minister Emma Reynolds confirmed the deadline would be maintained last October. However, Reynolds did not give a definitive launch date, stating only that it was “too early to confirm a launch date for public use” and that it would be made available “at the earliest opportunity.”
Although schemes will begin connecting in 2025, consumers may not interact with the fully operational system until 2027. The Financial Conduct Authority (FCA) will also regulate the dashboard to ensure security and transparency.
When the system is live, two versions of the dashboard will be in use. The first will be operated by the government’s MoneyHelper service. This will allow users to see all their pension pots in one place without many additional functions. This will be available first, followed by dashboards launched by private companies. These will have the same central purpose of bringing pension pots to a central location but also offer additional tools. These could include things like consolidating pensions or investment advice.
As there is still some time until the Pensions Dashboard becomes a reality, savers can use the government’s Pensions Tracing Service to find any lost pension pots.
How to track down lost pensions
To track down old pension pots, the first thing you need to do is contact ex-employers and dig out old paperwork. However, if this isn’t possible, then the Government has a free Pension Tracing Service tool to track down lost pensions on its website.
It is a free service which searches a database of more than 300,000 workplace and personal pension schemes. To use it, you will need the name of an employer or a pension provider. If you find an old pension pot then the service provides contact details for pension schemes run by employers, as well as for private schemes organised by pension providers.
You will only be able to get the details of your pension savings once a pension firm has established you are who you say you are, and that you have a pension pot with them. The service will not tell you how much you have in this particular pension pot, you will need to contact the pension administrator yourself to find out if you have any money with them. You can use the Pension Tracing Service through the GOV.UK website here. You can also call them on 0800 731 019.
