Usage of Pension Tracing Service up 58% – but should you consolidate those “lost” pensions?

Calls to the Pension Tracing Service have risen 58% over the last year from 43,614 to 68,709 (year-end Sept 30 2025), as more savers looked to find old or “lost” pensions, a study by chartered accountants and business advisors Lubbock Fine, shows.

Andrew Tricker, Director of Lubbock Fine Wealth Management, said that the increase indicates that more people are looking to trace their pensions in order to maximise their retirement savings, in the face of higher living costs. More than 993,000 people have used the Government’s free Pensions Tracing Service since May 2024.

Tricker explained that with people moving jobs more frequently than they used to, it is easy for them to lose track of the pension pots that they have accumulated especially as auto enrolment has broadened pension ownership.

Tracing multiple pension pots can then allow people to consolidate multiple pensions which can reduce fees and potentially improve investment performance which could boost their investment returns. Consolidating into one pension should make retirement planning and admin simpler.

People may also find that the pension pots being traced have pre-set risk levels that are no longer appropriate for their risk profile.

“People are increasingly taking the initiative to trace their pension pots, as evidenced by the sharp rise in calls to the Pension Tracing Service over the past year,” Tricker said.

“For someone who has had multiple jobs over the last decade the potential to lose pensions worth tens of thousands increases. Pension tracing and consolidation offers significant benefits, such as lower fees, simpler management and more efficient investment.”

Why consolidation is not always be the best route

However, Tricker warned that there can be downsides to consolidating pensions and that anyone thinking of doing so should first take advice.

One of the main unintended consequences of switching savings from one pension to another could be that people would lose attractive legacy benefits. These include enhanced tax free cash or guaranteed pensions.

Other benefits that could be lost on transfer include life cover or tax advantages that are attached to some staff pension schemes. There is also exit or transfer fees to consider.

Tricker concludes: “Pension consolidation can offer significant benefits, but it can also be complex, particularly when older pension plans are involved. Taking advice now ensures people are making the right move.”