Pension plans were probably the last thing on your mind when you were in your twenties. As you changed jobs or moved abroad, it is likely that you paid little attention to the pension contributions that you left behind. In today’s job market, lifetime pensions are fast becoming obsolete. Job hopping is increasingly common so it’s unsurprising that many people have no idea about the different pension plans they’ve accumulated throughout their career.

According to Glenn Gaughran, Head of Business Development at Independent Trustee Company (citing OECD research), only 35% of employees in Ireland had stayed in the same job for 10 years or more by 2022. This trend illustrates how often people change jobs and the difficulties associated with managing multiple pension pots. The outcome? Many people don’t know about the sizable pension savings they have made. 

Tracking down these pensions can be challenging if you’ve switched jobs a number of times, changed your surname after marriage, or relocated without telling your former employers where you were going.  Pensions are often tied to work email addresses, which become inaccessible once you leave a job. In fact, there is approximately €500 million worth of unclaimed retirement benefits in Ireland alone. 

However, failing to address these dormant pensions could result in missing out on a significant sum of money.

Finding a lost pension can be time-consuming and frustrating; however, following these five steps could mean all the difference between being cash-strapped during retirement and living comfortably. 

Find Old Documents 

If when leaving employment and you’re still entitled to future pension benefits then you become what is referred to as “a deferred member.” Nonetheless if the trustees running the pension scheme do not have your current contact information, they will be unable to send you updates on your benefits or the pension fund’s performances. You need to find their details for yourself. 

If you’ve kept all your paperwork from previous employers, you might find clues to your old pensions in a kitchen drawer or a box in the attic. Look for old benefit statements, payslips, contracts of employment or emails that mention the name of a former pension provider. 

The most common reason why people lose touch with their occupational pensions is lost paperwork. With technology these days, many pension providers now have online portals or apps where you can easily find information about your pension schemes. 

Get in Touch with Your Previous Pension Provider 

In the case that you can identify who owns your pension scheme you may be able to reach out to them and inquire if they still administer the policy. To trace your missing plan, they may ask for some details like date of birth, current address as well as Personal Public Service (PPS) number. 

For example, if a merger took place and your pension was transferred to another provider, the original supplier should be able to direct you to the new firm. If your benefits were moved too, you are entitled to a “preserved benefit” which is a retirement savings that can be claimed at normal retiring age as long as you contributed for at least two years. 

For pensions abroad, the Irish equivalent of the PPS number is required such as the national insurance number in UK while past addresses and employers will also enable location of such pensions. 

Lookup Your Employer 

In case you do not have any documentation regarding pension plans you can send an inquiry email to your previous employer’s HR Department who may then guide you on how you could get touch with the scheme and offer details like policy number. In instances where the employers went out of business, contact colleagues who had been there earlier for information about what became of the scheme or who was its provider; otherwise try LinkedIn. 

Just knowing chairman names can be useful for tracing old schemes. The companies registration office may give some other leads. 

Report To Pensions Authority 

If all your efforts seem fruitless it may be necessary to approach the Pensions Authority which is responsible for regulating occupational pensions in Ireland. Trustees are obligated by law to register all pension schemes with this body and must make reasonable attempts to locate members. 

If the company ever liquidates, then it would mean that these schemes should wind up and members will then be transferred into Personal Retirement Bonds (PRBs) unless advised otherwise by them. 

Consult A Financial Advisor 

A qualified financial advisor can help you find a lost pension plan. They can help simplify complex processes including contacting providers on your behalf where signed letters of authority grant access rights. 

International pensions might necessitate employing an overseas specialist in pensions since your old pension may be somewhere outside the country. Such professionals go through different records of finance or databases in order to find your name. 

What Next: Managing your discovered pension funds 

Now that you have located all the old pension pots, depending on your age, financial position and retirement goals, there are various options available. An independent financial advisor is best positioned to guide you in making a decision.  

For many people it makes sense to move their pensions into one scheme as it will be easier to administer investments and access benefits when they retire. Moreover, you pay less fees this way since having multiple pensions often means multiple fees. 

Alternatively, leave your pension where it is and start drawing down at the normal retirement age for your scheme. Even though contributions stopped when you left the job, any defined contribution pension you had would still have been invested and should benefit from compound interest over time. 

If you want all pensions in one place then it may be possible to transfer them into a current employer’s pension scheme if this allowed. On the other hand transferring such funds into a PRB or a Personal Retirement Savings Account (PRSA) allows you to take charge of investment decisions directly. 

Prior to any decision making, it is essential to think about the long-term effects. For instance, accessing your pension funds before retirement could restrict their potential for growth. However, in certain instances, early withdrawal of part of your pension may be useful particularly when you are financially challenged or planning some life events. 

In short, it is quite important to track and control our lost pensions; thus having a great financial future where you can enjoy a peaceful retirement. 

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