Legal & General (L&G) has launched a pension tracing and consolidation business to assist consumers as some £19.4bn of retirement savings remains unclaimed.
The provider has launched a ‘no-strings’ tracing service to help people track down lost or forgotten pension pots and a separate consolidation service to combine multiple pots with L&G.
The tracing service costs £100 with no obligation to buy a product once complete. If they choose to use L&G’s consolidation service within six months the fee is waived.
The provider said 1.6 million pension pots worth £19.4bn are currently unclaimed.
The government runs its own Pension Tracing Service, however, the insurer said many people found the process too laborious and complex.
L&G Retirement Income managing director Emma Byron (pictured) said the average value of lost pots was almost £13,000 and the government predicted there could be as many as 50 million dormant pensions by 2050.
“People now have control over their own retirement planning, which is great, but for the many non-advised consumers that means they need simple, low-cost and transparent products.
“Having launched our self-service drawdown product earlier this year, based on the FCA’s investment pathways, we are now continuing to lead on innovation with our tracing and consolidation services,” she said.