Has your pension pot got a few missing pieces?

TRACKING DOWN LOST CONTRIBUTIONS AND DECIDING WHETHER TO COMBINE THEM COULD BE KEY TO SECURING YOUR FINANCIAL FUTURE.

- BY CAMILLA FOSTER

EMPLOYERS in the UK must set up auto-enrolment pensions for their eligible employees - typically those older than 22 and earning at least £10,000 a year - and will then contribute to the pot every month.

This is very useful for building a solid pension, but anyone who's changed jobs since this law came into force will know that those plans can lie dormant when a new one is set up. If you're a job-hopper, these plans can start to pile up and can easily be forgotten.

"The estimated value of lost pension pots across the UK has risen to more than £31billion - that's equivalent to £931* for every working person," points out Lizzy Holliday, director of public affairs and policy at now:pensions.

For many people one of the best options is to find and consolidate them into one, easily-managed plan.

But how do you do that, and what potential downsides are there?

Let's take a look - please note nothing detailed herein constitutes individual financial advice, and it is highly recommended you source advice before taking any action. Pensions are a long-term investment and your capital is at risk.

How to consolidate an auto-enrolment pension

Consolidating your pensions essentially means merging your different pension pots into one, giving you a combined sum that can be easily managed and all in one place.

The traditional method is to do it manually by gathering data on all of your pensions and doing the necessary paperwork to get them moved over to a single plan.

Fiona Peake, personal finance expert at Ocean Finance says: "Make sure you have up-to-date details for each one, such as the provider, the value, and the terms of the scheme.

"You can usually do this by checking your annual pension statement or contacting previous employers or pension providers."

You will then need to request a pension transfer form from each one, complete them, and submit them for transfer.