How long does it take to trace a pension? What to expect

Tracing your lost pensions is an essential step if you plan to combine them with your current retirement fund (and helpfully tidy up some ‘life admin’ paperwork in the process). But you may be wondering how long it actually takes to trace a pension and transfer it elsewhere.

In this article, we’ll explore the typical timeframes for pension tracing, the factors that affect how long it takes, and how you might be able to speed up the process.

Whether your case is straightforward or complex, we’ll guide you through the steps to locate and manage your retirement savings effectively.

Jump to:

• Typical pension tracing timeframes
• What affects how long pension tracing takes?
• Step-by-step pension tracing process and timeline
• How to speed up your pension search
• What to do after finding your old pension
• Conclusion

Typical pension tracing timeframes

The length of time it takes to trace a pension depends on the complexity of your situation. Here’s a general breakdown:

• Straightforward cases with good documentation
  If you have all the details of your past pensions and know the provider’s details, the process could take as little as 2-6 weeks, depending on how quick the provider can work and what type of pension you have.
• Trickier cases
  If your previous employer has merged, dissolved, or gone bankrupt, or if you’ve lost a significant amount of your documentation, the process could take up to 12 weeks or more.
• What you choose to do next
  If you’re tracing these pensions to consolidate (combine) them with your current pension pot, or you want to open a new Personal Pension to merge just your older pots together, this is usually pretty simple to do. However, the new provider and your existing provider may need some time to process things for you. We’ll go into this in further detail later on.

What affects how long pension tracing takes?

Several factors could impact how quickly your pension is tracked down, including:

• Your documentation: Gathering employment records, payslips, and pension statements in advance could significantly speed up the process.
• How many pensions you’re tracing: The more pensions you need to locate, the longer the process may take on the whole. Also, some pots may be found quicker than others.
• The status of your old company: Active companies are usually easier to trace. But if your old employer has merged with another firm, been dissolved, or filed for bankruptcy, then additional steps may be required. You can read our blog on this here: finding a pension from a dissolved company
• The type of pension scheme it is: Much older pension schemes or defined benefit pensions may require more time to locate.
• Which tracing method you use: Whether you decide to use a paid tracing service (such as with a pension provider) or the government’s free tracing service resources could influence the speed of the process. And some providers may offer this for free nowadays anyway, so it’s best to do your research.

By preparing thoroughly and choosing the right tracing method, you can minimise delays and ensure a smoother experience.

Step-by-step pension tracing process and timeline

Here’s what the pension tracing process typically looks like:

1. Initial research and document gathering: start by collecting all relevant information, such as:

i. pension statements,

ii. employer details,

iii. and any correspondence related to your pensions.

This step may take anywhere from a day of ‘life admin’ to a whole week, depending on how organised your personal paperwork files are, or how much spare time you have to search through them.

2. Pension Tracing Service search: the government’s tracing service can help provide contact details for your pension provider almost immediately. That’s usually a quick one on the list.

3. Direct contact with pension providers: from there, you can get in touch with the provider for an update on your pension pot and communicate with them regarding your next steps.

At this stage, it may also be worth updating your personal details and asking for information around their fees and whether there are exit charges — all helpful information if you’re thinking of consolidating this fund with another pension provider.

4. Complex investigations: if your provider/tracer needs to investigate further, this can take an additional 4-12 weeks or more, so try to exercise patience and keep an open mind if this happens.

5. Instructing the provider on what to do next: once everything is traced, the next stage that may take some time is whether you’ve decided to have the pot(s) moved to another provider.

Whether it’s to potentially save money on paying multiple pot’s fees, you’d prefer the money to be invested in a way that better suits your values, or you’d simply prefer all of your retirement fund in one place for things to be easier to manage, combining your defined contribution pensions into one place is relatively straightforward.

You’ll just need to factor in some more time for the new provider and the existing provider to complete this for you. If you wanted to move your pension pot to Wealthify, for example, we say it takes around 30 days to complete if you use our app to opt for an electronic transfer. Or it could be 8-12 weeks if you opt for a manual transfer (where you’d complete a form and send it back to us).

Wealthify will always request the transfer within those time frames, but how long the transfer takes really depends on the other provider that’s transferring to us (as they will all have their own timescales and requirements).

Also to note, during this transition period, it’s important to understand that pensions are products which invest your money in hopes that they’ll grow in value significantly enough to fund your retirement.

So naturally, if you are combining your pots or transferring to a new provider, these existing investments would need to be sold off, transferred as cash to your new chosen provider, and reinvested by the new provider.

Don’t worry, as the providers handle all this for you, but this does mean there’d be a window of time when your money wouldn’t be invested and is ‘out of the market’ until it can be reinvested again.

If you’ve already shopped around and you know you’d like to have the old fund moved into another, speak with the existing and new provider directly about their expected timelines.

While these timeframes are estimates, being organised and proactive could help the process stay on track.

How to speed up your pension search

If you’re eager to trace your pensions as quickly as possible, follow these tips:

• Get your essential documents and personal details ready: Have your National Insurance number, pension statements, and details of your previous employers ready before starting your search. It may also be handy to have your past address information from when you worked at that employer.
• Contact your provider as soon as you’ve traced their details: The sooner you get in touch, the sooner you know all the essential details of the existing pension (it’s current value, how the provider has been investing it for you, fees and charges, etc.) and can make a more informed decision on what you’ll do next.

By taking these steps, you can cut down on waiting times and locate your pensions more efficiently.

What to do after finding your old pension

Once you’ve successfully traced your pension, it’s time to take action:

1. Review your pension value and benefits statement: check how much your pension is worth and what benefits it offers, such as guaranteed income or lump sum options.
2. Compare these to other providers on the market: shop around, you may find a better-suited pension provider out there. Then you can decide whether to leave the pension where it is, transfer it to a new provider, or combine it with your other pensions.
3. Choose whether to combine old pensions: You could also mix and match your decision, as perhaps you have one old pension that has very generous benefits, so you’d prefer to leave that where it is, and bring some different past pension pots together instead.

Consolidating your pensions into one pot can simplify management and potentially reduce fees (depending on the new versus old provider’s policy on this). However, if you’re ever unsure, get in touch with an independent financial adviser to help you. (Wealthify doesn’t offer financial advice.)

Conclusion

While patience and organisation are essential, the potential financial benefits may make the effort of tracing your pensions worth it.

With millions of pounds in unclaimed pensions across the UK, starting your search early could significantly boost your retirement savings.

If you’re ready to consolidate your pensions, check out our pension consolidation page or learn more about pension transfers. Take control of your retirement planning today and secure the future you deserve.

References:

1. Brits missing £31.1bn in unclaimed pension pots | ABI