Pension update: Britons could boost retirement savings by £16,000 with online tool

Through this online tool, new and existing Moneyfarm clients are able to easily set up FCT requests to find their lost or old pension schemes.

This comes as the figures from the Pensions Policy Institute (PPI) revealed there was £26.6billion in lost pensions recorded in the UK back in 2022, up from £19.4billion in 2018.

It is estimated that this affects around 2.8 million Britons with each lost averaging around £9,500.

Furthermore, out of those aged between 55 to 75, the average lost pension pot was found to be £16,004.

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Thanks to Moneyfarm's new tool, investors will able to make their money go further by accumulating lost pension pots.

These will be consolidated into one new personalised plan which will allow the platform's clients to determine their total amount in pension savings.

This will hopefully allow savers to tailor their investment needs and objectives more to their individual needs.

Through Moneyfarm's service, pensions transferred will be checked for any benefits that may be lost such as guaranteed tax-free cash or penalties that may be incurred before the transfer is made.

This new tool comes as 10 million pensioners are expected to lose up to £300 in energy bill support this year following the news that the Winter Fuel Payment will be means-tested.

Going forward, older Britons will now need to be in receipt of Pension Credit, a benefit payment from the Department for Work and Pensions (DWP) which is reserved for those on low income.

Giovanni Daprà, the Founder and CEO of Moneyfarm, urged people to take advantage of the investing platform's new product.

He explained: "At Moneyfarm, our purpose is to make finance simple and accessible. Staying on top of pensions has never been more crucial, and one of the simplest and most efficient strategies is to consolidate old pensions into a single, personalised plan.

"The launch of the Find, Check & Transfer Service marks a significant milestone in Moneyfarm’s journey.

"It showcases not only the integration of Profile Pensions’ capabilities but also the synergies between Moneyfarm and Profile Pensions following our acquisition of them over a year ago."

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Stephen Mark Jones, a product manager at Moneyfarm, added: "We are incredibly proud to launch the Find, Check & Transfer Service for our UK clients.

"This tool simplifies the admin-heavy task of helping individuals reconnect with their lost pension pots, ensuring they can make informed decisions about their retirement planning.

"Despite the substantial sums at stake, only four per cent of people instinctively inform their pension provider when they change address, compared to 66 per cent who notify their bank and 89 per cent who update their GP or dentist.

"These figures underscore the systemic issues within the UK pension market, highlighting our mission to help individuals reclaim their pensions and plan their financial futures effectively."