Pensions

Ex-employees have up to £1trn left in deferred pensions | Business

Sir Steven Webb, a former minister of state for pensions, said that companies were not doing enough to keep past workers informed about their pension benefitsMatt Cardy/Getty Images

Most of the five million people who have valuable pension rights clocked up from previous jobs are being neglected by their ex-employers, the former pensions minister says.

Sir Steven Webb said that employers and trustees were not doing enough to keep past workers informed about their pension benefits — which could often be more valuable than their homes.

He estimated that between £500 billion and £1 trillion was contained in deferred pension rights in Britain. “There’s an awful lot more they could and should be doing,” he said.

When people change jobs they usually choose to preserve their pension benefits with their former employer, becoming so-called deferred pension fund members.

However, employers give them much less attention than existing staff, or “active” pension fund members,…

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