Standard Life, the brand looking after peoples’ life savings for nearly 200 years and a part of the Phoenix Group, has launched a new pension tool powered by pension-finding platform Raindrop, as it reveals UK consumers are struggling to keep track of their pension pots.
The research found that 19 per cent of users have lost track of their pension pots, despite the benefits of consolidating them. Seventy-three per cent of respondents said they are not taking advantage of less admin and filing, a greater ability to track performance and boost understanding of how much is being saved for the future, and possibly lower charges.
Worryingly, 32 per cent are unsure of how to start consolidating, and 12 per cent find the process too difficult.
It’s estimated that 2.8 million pension pots in the UK, valued at over £26.6billion, remain unclaimed. This figure is many billions greater than the blackhole currently facing the UK’s public finances. With the average person having at least 11 employers in their working lifetime, the process of tracking pensions down and managing them simultaneously is proving a challenge for many.
Standard Life identified the following as major reasons people have lost their pension pots:
Starting a new job and changing employer
Moving address and not updating a pension provider
Unsure of the company name following merger, acquisition or brand name change
No knowledge of who provided their workplace pension
Vague idea of having a pension with a previous employer but no idea how to initiate the tracing process
Finding a solution
Working with Raindrop, Standard Life has simplified the pension-finding process. Rather than providing details of the pension provider in each previous role, users instead provide an employer’s name and time period employed.
Raindrop’s technology does all the heavy lifting, with the tracing process on average taking four to six weeks. During this time a dedicated case manager is on hand to provide updates on the process. Once a person’s lost pensions have been traced they will be better informed about their income prospects and able to take the necessary steps to better prepare for their retirement.
Since the launch of its pension-finding platform, Raindrop has located over £325million in lost pension savings across more than 27,000 pots.
Recovering pensions
Launching the service, Dean Butler, managing director of retail direct at Standard Life said: “We know that people who actively plan for their retirement are more confident and financially secure but if you don’t know where all your savings are, you can’t begin to calculate their value, making planning unnecessarily difficult.
“Sometimes people have a vague idea of having a pension with a previous employer but then just don’t know how to go about finding it. Our new pension finding service removes the major hurdles that people face and allows them to regain control of their pensions savings. We want to help them trace any missing pensions, so they don’t ever lose them again and are better prepared to organise their retirement savings.”
Vivan Shridharani, co-founder and CCO at Raindrop
Vivan Shridharani, co-founder and CCO at Raindrop said: “Millions of UK savers have lost pensions, often unsure of how to begin their search. As each new generation has more jobs than the last, the number of lost pensions continues to grow. We’re committed to helping savers, with a simple solution to easily find their lost pensions and help them better prepare for their financial future.
“By partnering with Standard Life, one of the UK’s largest pensions providers, we hope to empower savers to locate lost pots and take control of their long-term financial planning.”
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