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.