Billions in pensions go missing: JP Morgan and Standard Life reconnect Brits with lost wealth
Over £2bn in lost wealth was returned to savers in the first six months of the year, by firms including JP Morgan and Standard Life who want to reconnect Brits with lost money.
The initiative, dubbed ‘Billions 4 Millions, returned £2.5bn in lost and uncliamed financial assets to consumers, spanning pensions, investments, savings and financial protection.
On average, customers were reconnected with £31,647, while the largest recovery involved a protection policy worth over £3.2m.
The scheme, launched by lost asset finder Gretel in January, initially aimed to return £1bn to UK consumers by the end of 2026, but has now increased the target to £5bn.
Duncan Stevens, founder of Gretel, said: “Lost assets are often thought of as small forgotten balances hardly worth worrying about, but these can be pensions, savings and insurance worth genuinely meaningful sums.”
Other firms involved include Aviva and Foresters Financial.
Losing track
Gretel estimates that roughly £89bn is sitting in forgotten or unclaimed accounts. Customers tend to lose track of their finances upon moving house, changing their name and if paperwork is misplaced.
Accounts are declared dormant when banks fail to track holders down at their last known address or after prolonged periods of inactivity.
Pensions account for roughly £31.1bn of unclaimed UK wealth according to the Pensions Policy Institute. Workers tend to lose track of pots when switching jobs or if their provider closes down.
Pensions accounted for 80 per cent of wealth returned, but just 38 per cent of overall value.
In comparison, insurance and protection made up 12 per cent of reconnections, but roughly 60 per cent in value. The average returned value reached £157,754.
Those born between 2002 and 2011 were also able to recover child trust funds, accounting for eight per cent of returns, granting adults access to needed funds for savings or investments.
Cost of living crisis
The milestone comes as prime minister Andy Burnham doubles down on tackling the cost of living crisis, raising questions on what role the financial services industry plays.
“At a time when helping people with the cost of living is the Government’s number one priority, there is an obvious opportunity here and it’s one that doesn’t require a new benefit or additional taxpayer funding,” said Stevens.
“If a relatively small group of firms can reconnect people with £2.5 billion in six months, imagine what could be achieved with much broader industry participation.”
Andy Briggs, chief executive officer of Standard Life, also noted that tracking down lost pension funds can help tackle the looming retirement crisis and build “greater financial security”.
Brits are opting to save less into their pension in order to afford more pressing needs, such as rent, leaving them without the level of funds needed to secure a comfortable retirement.
Briggs said: “For many people, a pension is one of their most valuable financial assets, yet it’s easy to lose track of savings after changing jobs several times throughout a career.
“It’s easy to lose track of savings after changing jobs several times throughout a career… reconnecting individuals with pension savings they’ve forgotten about is a practical step that can improve retirement outcomes.”