Consolidating lost pensions could add an extra £9,400 to your retirement | Personal Finance | Finance

Pension savers could boost their pot by £9,400 thanks to a new free online tool set up to help people recover lost pensions.

The service launched by AJ Bell helps a person trace any pensions held in their name, using their National Insurance number and some basic employment details.

The tool will tell a person which company is currently responsible for their pension and how much they have invested.

Figures from The Pensions Policy Institute released last year suggest the average lost pension is worth £9,470.

Kevin Doran, managing director at AJ Bell, said: “Getting control of your pension money is crucial in order to ensure your retirement plans are on track.

“Consolidating old pensions into a modern platform account can help you dramatically reduce charges, give you access to a choice of shares, funds or ready-made investment solutions, and allow you to manage your account online or by phone.”

A person can use the tool if they believe they have a lost pensions pot or if they just want to get details of all their pensions in one place.

Users also have the option to consolidate their pots into a single pot to make them easier to manage.

People may lose track of a pension when they change jobs or if their name changes when they get married.

In many cases, the company that gave the individual the pension product may have been absorbed into another business, making it hard to know who is now managing the pension.

The Pension Policy Institute found there were some £26.6billion in lost pensions last year, increasing £7billion in just four years.

People can also try to track down their lost pensions using the Government’s Pension Tracing Service.

The Government is also leading a project to create a pension dashboard, an online service where a person can see all of their pensions.

People can currently draw down from their private pensions once they reach the age of 55, while the state pension age is currently 66.

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