Less than a fifth (17%) of young people aged 18-34 know exactly where all their pension pots are, reveals research from pension-finding platform, Raindrop.

A fifth (19%) of 18-34 year-olds also admit that they have no idea how much they have saved for retirement – almost double the figure for older people aged over 55 (10%).

Research from Scottish Widows indicates that almost half (47%) of young people aged 22-29 are currently on track for a less than minimum lifestyle in retirement, meaning they will not be able to cover their basic needs and face poverty in retirement – this is the highest proportion of any age group*.

Raindrop’s figures indicate that this pension gap will continue to widen as younger people not only face struggles to save for retirement but are also at risk of losing pension pots as they continue to progress their careers.

Recent research from the Pensions Policy Institute (PPI) revealed that £31.1 billion is estimated to be sitting in lost pension pots. There are almost 3.3 million lost pots in the UK, with an average value of nearly £9,500.

Younger workers are likely to accumulate more pension pots over the coming years which risks worsening the lost pots issue. Three in ten (30%) people aged 18-34 have already had three or more jobs in their careers and are therefore likely to have multiple pension pots whilst a fifth (17%) plan to move to new roles every few years compared to just 2% of workers aged over 55.

Saver appetite to tackle the lost pots issue

In order to boost retirement savings, younger people want to locate their lost pension pots and gain greater control over their pensions.

The government is planning to launch a pension dashboard in October 2026 that will enable people to locate lost pots - a fifth (19%) of young people are planning to use this pension-finding service, but don’t want to wait until October 2026. A similar proportion (18%) say they would rather use a solution offered by their bank or pension provider than the government’s platform.

Savers need access to a simple approach to locate lost pots – collaboration across financial services is key to enabling this and offering enhanced support to savers.

Vivan Shridharani, Co-Founder & CCO at Raindrop, said: “Young people face a future pensions crisis as the lost pots issue is set to explode in the coming years.

“Billions of pounds are already wasting away in lost pots - millions of young savers risk losing track of pension savings as they increasingly switch roles every few years and start paying into new pots. The traditional career path of a company for life and just one pension is virtually extinct – the number of lost pension pots is accelerating partly as a result of more flexible and diverse career choices of younger employees.

“It’s vital that people take control of their retirement savings - however, tracking down old pots is often hugely complicated and time consuming. Pension-finding solutions can play a key role in solving the lost pots crisis, supporting with consolidation and helping people achieve the retirement they want.”

Raindrop’s pension finding technology enables savers to locate lost pots by working with banks, pension providers and financial advisers including AJ Bell, Monzo and Standard Life. Since launch, Raindrop has located over £440m in lost pension savings across almost 40,000 pots.

* According to Scottish Widows Retirement Report 2024.