Lost assets returned
Roughly £2.5bn in lost and unclaimed financial assets was returned to UK savers in the first half of the year, according to two reports. The money was recovered through the Billions 4 Millions scheme, launched by lost asset finder Gretel, with firms including JP Morgan and Standard Life participating.
The recovered assets spanned pensions, investments, savings and financial protection. On average, customers were reconnected with pots worth £31,647, while the largest recovery was a protection policy worth £3.2m.
Pensions accounted for 80% of the number of claims but just 38% of the overall value, reported both City A.M. and The Sun. Insurance and protection made up 12% of claims but roughly 60% of the total value, with the average returned value for these reconnections reaching £157,754, according to City A.M.
Child trust funds for those born between 2002 and 2011 accounted for 8% of returns, City A.M. reported.
Scheme ambitions
The scheme, launched by Gretel in January, initially aimed to return £1bn to UK consumers by the end of 2026, but the target has now been increased to £5bn, according to City A.M.
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."
Gretel estimates roughly £89bn is sitting in forgotten or unclaimed accounts. Accounts are declared dormant when banks fail to track holders down at their last known address or after prolonged periods of inactivity.
How pots go missing
Savers often lose track of their finances upon moving house, changing their name, or if paperwork is misplaced, both reports noted. Workers also lose track of pension pots when switching jobs or if their provider closes down.
According to the Pensions Policy Institute, £31.1bn in retirement savings is unclaimed. Andy Briggs, chief executive officer of Standard Life, said that tracking down lost pension funds can help tackle the looming retirement crisis and build greater financial security, as reported by City A.M.
The reports also noted that Brits are opting to save less into their pensions in order to afford more pressing needs, such as rent.
How to find a lost pension
Both reports offered practical advice for savers looking to trace lost pots. The Government's Pension Tracing Service is free to use and provides contact details of pension providers. AJ Bell offers a pension tracing service that charges up to a 0.6% fee for managing a consolidated pot, according to The Sun.
Financial providers participating in the Billions 4 Millions scheme include Aviva, Phoenix Group, Foresters Financial, JP Morgan Asset Management, Janus Henderson Investors and Rathbones, as listed by The Sun.
Other firms involved include Aviva and Foresters Financial, City A.M. added.