AJ Bell launches free pension tracing tool – how does it compare?

Workers typically lose track of their pensions when changing jobs or moving home, but now there's a new tool that could help track them down.

It's being offered by investment firm AJ Bell and as well as tracing missing pots it can give you an indication of their value.

A Which? investigation into lost pensions found 45% of those surveyed didn't know how many pension pots they had and only 31% knew how much their pension was worth.

The government is planning to introduce pensions dashboard as a way to bring pension pots together in one place, but the project has been delayed so free pension tracing tools can help fill the gap.

Here, Which? takes a closer look at AJ Bell's tool and how it compares with other services that can help you hunt down lost pension savings.

How do pensions become lost?

The average person will have around 11 different jobs over their lifetime and move home eight times, according to the Association of British Insurers (ABI). 

Research organisation, the Pension Policy Institute, estimates that 3m pension pots are lost in the UK, worth a total of £26.6bn.

In many cases, the company that originally sold the pension product may have been absorbed into another business and the brand is no longer active. This can make it challenging to find out who now administers your pension account.

Searching for lost workplace pensions can be quite an onerous task, as several volunteers found out when we tasked them to track down their lost pensions.

How does AJ Bell's pension tracing tool work?

If you're a UK resident, you can use the AJ Bell find my pension tool to search pensions held in your name, using your National Insurance (NI) number and basic employment details.

It takes around two to four weeks to complete and is free to use.

The search will come back with the details of your pensions, including which company is responsible for the pension today, the transfer value, whether there are any defined or guaranteed benefits attached to the plan and whether it's eligible for transfer. 

You’ll also be told the approximate value of your pension or pensions. 

Once the search is complete, you’ll be given the option of transferring your pensions into one with AJ Bell.

Should you combine your pensions?

If you have several different workplace pensions built up with different employers, it can be difficult to keep track of how they're performing. 

A pension transfer would see you consolidating your pots with another provider, or moving your existing pots into one of your pensions. 

The main reasons to switch include reducing the charges you pay or accessing different investment options.

However, you may have to pay ‘exit penalties’, which could cancel out the benefit of transferring to a new provider. 

• Find out more: should I combine my pensions?.

How does AJ Bell's tool compare?

There are several other free tools you can use to track down your pensions. 

Government pension tracing service

The pension tracing service searches a database of more than 200,000 workplace and personal pension schemes to try to find the contact details you need. It's free to use. 

You can search online or call on 0800 731 0193.

However, unlike the AJ Bell tool, it won't tell you whether you have a pension or what value it is, and you'll need the name of an employer or pension provider to use the service. 

Gretel 

The assets-tracing service was launched last year and is free to use. 

It can also help reunite you with other lost products such as bank accounts and insurance policies.

All you need to do is register your details and it will continue to keep searching as more records are added.

Currently, it has around £3bn of assets on its platform and will keep searching as more records are added to its database.

• Find out more: how to find lost bank and savings accounts 

The Pension Tracing Service

Not to be confused with the government's tracing service, this is a private service that launched in 2012 and is free to use. 

You'll need to give the service written authorisation to conduct the search and provide some personal details such as your NI number.

The Pension Tracing Service will then contact HMRC, DWP, pension providers, trustees and previous employers to try and trace your missing pensions. 

It has access to the pension scheme registry, meaning it can access up to 200,000 schemes. 

Like AJ Bell, the service will also be able to give an indication of the value of your lost pension pots.

ABI Lost Pensions

The Association of British Insurers gives you steps you can follow to find the relevant contact details for the provider now responsible for your policy. 

It’s free to search, but fairly limited unless you already know who your pensions were with.

How to reduce the risk of losing track of a pension

The best way to keep track of your pensions is to be organised and keep all of your pensions paperwork in one place.

You should also be sure to tell your previous scheme administrator about any changes of address so they can contact you if there are any issues.

• Find out more: retirement and pension advice.