Thousands of pension schemes across the UK are reportedly failing to carry out crucial data accuracy checks, potentially leaving millions of savers unable to trace their retirement funds. A recent Freedom of Information (FOI) request by pension-finding platform Raindrop revealed that less than half of the schemes assessed by The Pensions Regulator completed both required annual data assessments last year.
These assessments are vital for ensuring the accuracy of member information, including contact details, dates of birth, National Insurance numbers, and data needed to administer benefits such as salary and contributions. Out of 5,686 workplace defined contribution (DC) non-micro schemes and workplace defined benefit (DB) schemes, only 48% completed both common and scheme-specific data assessments in the last year. This issue appears to be long-standing, with less than four in ten schemes reportedly completing these checks in recent years.
The Pensions Policy Institute (PPI) estimates a staggering £31.1 billion is currently held in 3.3 million lost pension pots across the UK, with the average lost pot valued at £9,470. This problem is exacerbated by individuals frequently moving jobs and accumulating multiple pension pots. If providers do not have up-to-date contact information, savers may miss out on annual statements and other important communications, making it increasingly difficult to keep track of their savings.
Vivan Shridharani, co-founder and chief commercial officer at Raindrop, highlighted the severity of the issue, stating that "dormant pots remain a huge problem in the UK." He emphasised the critical role pension schemes play in helping savers track their pensions, noting that inaccurate member data impacts engagement and heightens the risk of pots being lost. Shridharani urged providers to regularly update member contact details and ensure they have accurate insights into risk appetite and planned retirement ages to boost member outcomes and tackle the lost pots issue.
The economic implications for UK households are substantial. For many, a lost pension pot could represent a significant portion of their retirement income, impacting their financial security in later life. While the government offers a Pension Tracing Service, which saw 834,000 enquiries in 2025, it only provides contact details for schemes, not information on whether a pension is held or its value. Savers are encouraged to proactively update their details with providers, especially after life events such as moving house or changing jobs, to mitigate the risk of losing track of their hard-earned savings.