Millions of people are missing out on £31billion in lost pension pots - how to track yours down

New figures have indicated that an estimated £31.1 billion is sitting in unclaimed, inactive or lost pension pots, with the average value of these pots being £9,469. The Pensions Policy Institute (PPI) has found that approximately 3.29 million pension pots are considered lost for various reasons, such as job changes or outdated contact information with pension providers.

For people aged between 55 to 75, the average value of a lost pension pot stands at £13,620. Lost pots are defined by the PPI as those under the management of a pension provider who cannot get in touch with the pot's owner.

These new statistics emerge as part of the Pension Attention campaign, spearheaded by the Association of British Insurers (ABI) and the Pensions and Lifetime Savings Association (PLSA), with backing from the pensions industry. The campaign is gaining momentum as National Pension Tracing Day approaches on Sunday, October 27.

Chris Blackwood, the spokesperson for the Pension Attention campaign, urged: "If you can do one thing today, visit pensionattention.co.uk and use the pension tracing tools to find any lost pension pots. It only takes a few clicks, and you could substantially add to your pot. Additionally, you could also retrace your career steps, check old papers, look for any gaps in your pension history, and contact your provider to update your contact details."

The total value of unclaimed pension pots in the UK is believed to have skyrocketed by nearly £12 billion since 2018. However, locating this forgotten money may be simpler than you think, reports the Mirror.

The Pension Tracing Service, which is free to use, allows you to search a database of over 200,000 workplace and personal pension schemes. It will only provide you with the contact details of a provider - not the amount you could have in a pension - so you'll need to reach out to the pension administrator yourself to find out if you have any funds with them.

Alternatively, you can get in touch with your employer for the correct details. Pension Wise is a Government service that provides free pension guidance and advice.

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The Mirror previously reported on how one mother discovered £48,000 in just one overlooked pension pot. PR director Karin Ridgers, 52, mother to 17 year old son Callum, admitted she was unaware of the extent of her accumulated workplace pensions over the years.

The Pensions and Lifetime Savings Association (PLSA) published its latest Retirement Living Standards index earlier this year, indicating the amount of money required in later life to cover basic expenses, as well as luxuries.

The amount required for a "minimum" standard of living in retirement has risen by 12.5% to £14,400 for single people and by 12.6% to £22,400 for couples. Meanwhile, the cost of a "comfortable" retirement has increased by 15.5% to £43,100 for individuals and by 8.3% to £59,000 for two-person households.