Millions of people are set to miss out on an average of nearly £10,000 as a result of lost pension pots, new research has revealed.

Some £31.1 billion is estimated to be lying in unclaimed, inactive or lost pension pots.

Around 3.29 million pension pots are now considered lost, containing an average sum of £9,468.93, according to the analysis by research charity the Pensions Policy Institute (PPI), for the Pension Attention campaign.

The total value of lost pension pots in the UK is thought to have surged by nearly £12 billion since 2018.

(Image: Gareth Fuller/PA Wire)

A combination of people switching jobs and automatic enrolment into workplace pensions is behind the increasing number of pots going adrift, researchers said.

While the average lost pot is worth around £9,470, this rises to £13,620 among people aged 55 to 75, which could be crucial for people approaching or in retirement.

The PPI defined lost pots as those managed by a pension provider who is unable to contact the owner of the pot. This could mean that the provider has not heard from the owner for a while, or they have discovered that the details held for the owner are out of date.

It surveyed providers making up nearly two-thirds of the market and scaled the findings up to calculate figures for the whole of the UK.

The Pension Attention campaign is co-ordinated by the Association of British Insurers (ABI) and the Pensions and Lifetime Savings Association (PLSA) and funded by pensions industry bodies.

Chris Blackwood, spokesperson for the Pension Attention campaign said: “If you can do one thing today, visit pensionattention.co.uk and use the pension tracing tools to find any lost pension pots.

“It only takes a few clicks, and you could substantially add to your pot. Additionally, you could also retrace your career steps, check old papers, look for any gaps in your pension history, and contact your provider to update your contact details.”

People may find they can track down pensions by speaking to former employers, or by logging into pension providers’ websites or apps.

The UK Government’s Pension Tracing Service is available to help people find lost pension pots.

People can also visit the PLSA website to get an idea of whether they may be on track for the sort of income they expect in retirement. The PLSA has developed a set of retirement living standards to indicate what may be affordable in retirement.