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Follow on Google News | Prudential reveals fears over new generation of lost pensionsPrudential has revealed one in six workers admit to losing track of their pension fund when changing jobs, with the number of abandoned pension pots set to rise due to frequent job switching by younger workers.
By: Prudential To compound matters, the survey of employees found that three in four (76 per cent) people have no idea of the value of the company pension (http://www.pru.co.uk/ More than four in five (81 per cent) workers failed to actively transfer their previous company pension funds across to their new employers, while another 15 per cent relied on their new employers to make the switch. Keeping track of pension funds is a significant risk for younger workers, in particular, as they change jobs more frequently than older employees. According to Prudential's survey, workers aged between 18 and 34 have had, on average, three full-time jobs, compared with those aged 55 and over who have had just five jobs in their careers. Stan Russell, retirement expert at Prudential, said: "Saving into a pension today is an important step in the right direction for workers, to help ensure a comfortable retirement. "It is essential for people to understand what type and level of savings they have built up in the past. They must make sure that their previous employers have their most up-to-date personal details and are sending them annual pension statements, so they can keep themselves properly informed. "Keeping track of pension savings at every age is important but it is even more crucial for younger workers, who are likely to switch jobs more often, to actively manage this process. It's also important to consider the benefits of transferring previous pension savings into a new employer's scheme, although seeking advice before making such a big decision is a must. For those who have lost track of their previous company pension pots, the Pensions Tracing Service (http://www.direct.gov.uk/ Prudential's research also found that workers who do know the value of their combined pension pots say they have built up an overall fund worth £110,207, on average, over their working lives. However, there is a significant gender gap here as men believe they have built up pension savings totalling £154,094, whereas women estimate they have saved only £50,512. - ENDS - Notes to Editors: Vision Critical surveyed 2,000+ randomly selected workers, online in July 2012, as commissioned by Prudential. The information contained in Prudential UK's press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.pru.co.uk. About Prudential: "Prudential" PR Contact: Media enquiries Jo Field 3 Sheldon Square London W2 6PR 020 7004 8078 www.pru.co.uk End
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