Pension warning: Britons urged to retain key document to secure their full savings | Personal Finance | Finance
It can often be easy to lose track of pension arrangements as these can be started decades in advance. This is particularly the case with workplace pensions, which can amass as a person moves from job to job – usually changing companies. However, there is a way to keep track of cash to ensure a person has their full pension pot when it comes to retirement.
Express.co.uk spoke exclusively with the Pensions Protection Fund, with the organisation providing a guide for those switching roles.
The PPF said: “You’re not alone if you don’t know what happens to your pension when you change jobs.
“Almost one in three people with a Defined Benefit (DB) pension think you must be working for your employer at the time of retirement to receive a pension and this is not correct.
“Whether you’re working for the employer who offered the DB pension or not, you’ll still receive a pension from your scheme and the amount you get will typically be based on how much you earned and how long you were employed there.
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The PPF continued: “Make sure you hold onto the pension leaver statement you receive when you leave your employer.
“This holds a lot of very important information about what you are entitled to when you retire, whether payments will be made to your beneficiaries after you die and how your benefit might increase up to your retirement age.
“Some pension schemes also provide an online service where you can check your benefits on their website.”
If this is the case, then Britons should always actively engage with their former scheme.
This will particularly help those who have lost track of correspondence, and individuals who have forgotten who their pension provider is.
The PPF adds: “If your former employer is still in business, their HR or pensions team may also be able to answer any questions you have and help you get in touch with the scheme.”
The service will not tell individuals whether they have a pension, or what its value is, but it could point them in the right direction.
Individuals can either use the online portal, or request contact details via phone.
However, they should be aware phone lines are currently busier than normal due to the pandemic.
