The Pensions Dashboard, which is currently under development, will help people to track down all of their current pension pots – something which could save them thousands

As more individuals across the UK feel the financial strain in retirement, a new tool from the Department of Work and Pensions could assist workers in saving an additional £9000 for their pension pots. The Pensions Dashboard, currently under development, is a novel tool designed to help people locate all their existing pension pots – potentially saving them thousands.

Throughout our lives, many of us will work multiple jobs for various companies, and as we transition between businesses, it’s easy to lose track of an established pension as schemes vary from one company to another. This means our hard-earned contributions could be wasted if we forget about one of the pots.

The Pension Policy Institute estimates that around £3.3 million of these pots have been lost in the UK, averaging around £9,470 each. However, for those aged 55-79, they can be worth up to £13,620 per pension.

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Researchers also caution that as more people switch companies to advance their careers, the issue is likely to escalate as more pension pots are created. This is where the new Pension Dashboard aims to intervene.

The tool will provide people with a platform to view all their pensions in one place, including personal pensions, workplace pensions and the state pension once it is fully implemented, according to The Independent, reports the Express.

By consolidating all retirement savings information in one location, users will be able to visualise their total pension savings accurately, facilitating more effective planning for the future.

To ensure no pension falls through the cracks, all pension providers must register with the service, providing savers with access to a record of their current pensions, eliminating the need for individuals to track them down personally. According to the DWP’s timetable, all pension schemes must be registered with the service by 31 October 2026, a deadline previously agreed upon by the former Conservative government and reaffirmed by Labour Pensions Minister Emma Reynolds.

Nevertheless, in October, the minister stated that it was “too early to confirm a launch date for public use” of the Pensions Dashboard, describing its development as a “challenging and complex undertaking”. Upon the system’s launch, there will be two versions of the platform: one operated by the government’s MoneyHelper service and another by private pension companies.

The MoneyHelper version, set to launch first, will offer a streamlined and basic version of the platform, enabling users to view their pension pot balances and providers. The private versions, to be released shortly thereafter, will include additional features such as guidance on consolidating pensions or investments.

Until the new platform is officially launched, individuals can still manually locate their pension pots using the government’s Pension Tracing Service.