Retirement savings becoming “harder to track” as majority of UK workers now juggle multiple pension pots 

Nearly two-thirds of UK workers now have more than one pension pot, with experts warning that fragmented retirement savings are making it harder for employees to engage with long-term financial planning.

New research from financial wellbeing and retirement specialist WEALTH at work found that 62 per cent of employees with a defined contribution pension have accumulated multiple pension pots during their working lives. A further five per cent admitted they are unsure how many pensions they have.

The findings reflect increased job mobility alongside the continued impact of automatic enrolment, which has seen millions of workers build up pension savings across multiple employers.

However, the growing number of pension pots is also creating new challenges. According to the Pensions Policy Institute, around 3.3 million pension pots have now been lost, containing an estimated £31.1 billion in retirement savings.

WEALTH at work’s research suggests that improving visibility could significantly increase engagement. More than one in four employees (27 per cent) said they would be more likely to engage regularly with their retirement planning if they could see all of their pensions in one place.

The findings come as the pensions industry prepares for the introduction of pensions dashboards. Pension providers are required to connect to the dashboards ecosystem by October 2026, with the public expected to gain access from 2027 onwards. The service is designed to allow people to view all of their pension savings through a single platform.

While dashboards are expected to improve visibility, experts say many employees may still benefit from consolidating pensions where appropriate and receiving guidance to better understand their overall retirement position.

Encouragingly, attitudes towards consolidation appear to be changing. Almost one-quarter (24 per cent) of employees said they have already consolidated their pensions, while a further 32 per cent are considering or planning to do so.

Jonathan Watts-Lay, director of WEALTH at work, said the research demonstrates how fragmented pensions can become a barrier to effective retirement planning.

“Having multiple pension pots is now the norm, but this can make it much harder for individuals to see the bigger picture. Without a clear view of their total pension savings, it becomes more difficult for people to plan effectively or make informed decisions.

“The findings highlight the important role of financial education in the workplace, alongside solutions such as pension consolidation, in helping improve visibility, engagement and overall understanding of retirement savings. As individuals approach retirement, access to personal retirement guidance also becomes increasingly important in helping them understand their options and make informed choices.

“Improving engagement can be hugely beneficial for employees in supporting better financial wellbeing, reducing financial stress and helping people to feel more confident about their future. This in turn has a positive impact on business productivity and helps employers better plan for retirement across their workforce. For employers looking to support their workforce, specialist workplace providers can help deliver structured, robust support at scale.”