Multiple pension pots are now the norm for many UK workers, creating new challenges around visibility and engagement, according to new research from financial wellbeing and retirement specialist WEALTH at work.
The study of 2,000 UK workers who have a defined contribution pension found that almost two-thirds (62%) now have more than one pension pot, reflecting increased job mobility and the long-term impact of automatic enrolment. At the same time, 5% of employees say they are unsure how many pensions they have, highlighting how fragmentation can reduce oversight of retirement savings.
Fragmentation is a growing issue across the UK pensions landscape, with millions of small, deferred pots building up over time – many of which eventually become ‘lost’, as individuals lose track of them or no longer engage. Pensions Policy Institute research estimates there are around 3.3 million lost pension pots in the UK, containing £31.1 billion worth of assets.
WEALTH at work’s new research also highlights a clear link between visibility and engagement, with 27% of employees saying they would be more likely to engage more regularly if they had a single combined view of the value of all their pensions.
With pension providers required to connect by October 2026, pensions dashboards are expected to be rolled out to the public from 2027 onwards. The aim is to improve visibility by allowing individuals to see all their pension savings in one place. However, while this will be an important step forward, people may still want to take action to bring their pensions together and fully understand their overall position.
Encouragingly, there are already signs that people are beginning to take action. The research found that around a quarter (24%) of employees have consolidated their pensions, while a further 32% are considering or planning to do so. This highlights both growing recognition of the need to take a more holistic view of retirement savings and the increasing importance of workplace support in helping employees take action.
Jonathan Watts-Lay, Director, WEALTH at work, comments: “It’s now very common for people to build up multiple pension pots as they move between jobs, but this can make it difficult to keep track of what you’ve saved. Without a clear view of all your pensions, it’s harder to understand whether you’re on track for the retirement you want.
“Bringing pensions together through consolidation, and checking them regularly, can help you build a clearer picture of your overall savings and take action if needed. Many workplaces now offer financial education and help with pension consolidation.
“As you get closer to retirement, it becomes even more important to understand what your savings might mean for your future income and the choices available. Making use of retirement guidance, particularly through your workplace if it’s available, can help you make informed decisions when the time comes. It’s always worth speaking to your employer to find out what support is available.
“Ultimately, keeping track of your pensions, considering whether to bring them together, making use of support available through your workplace and getting the right guidance at the right time can help you make the most of your savings and feel more confident about your future.”