These figures are more than statistics; they represent real people whose retirement security is at stake. For trustees and scheme managers, unclaimed pensions pose a growing challenge both in terms of fiduciary responsibility and scheme governance. As people live and work longer, switch jobs more often, and move more frequently, traditional tracing methods have struggled to keep up. Outdated contact details, name changes, and incomplete records continue to block efforts to reconnect members with their retirement savings, a challenge set to become more pressing with Pensions Dashboards approaching.
Schemes that continue to rely on outdated tracing processes risk distorted valuations, rising costs, and increased regulatory scrutiny. The Pensions Regulator now expects schemes to demonstrate proactive and auditable tracing, reconciliation of deferred and unclaimed benefits, and readiness for dashboards and data-sharing. Yet beyond compliance, tracing is a fiduciary duty and an opportunity to reunite members with money that can materially improve their retirement outcomes.
Traditional tracing tools often fail to return a result, particularly for smaller schemes, members living abroad, or those who have changed names. There is a clear need for solutions that combine technological capability with human insight, ensuring outreach is both effective and sensitive.
Recognising these challenges, forward thinking schemes and advisers are exploring new approaches to tracing that prioritise members, one such solution involving combining AI-driven digital footprint analysis with human outreach. Advanced algorithms can search public records, online channels, and unconventional data sources to identify members who might otherwise be considered lost. Once potential matches are identified, trained case managers can engage members directly, providing clear and sensitive communication and ensuring entitlements are fully understood.
Even in illustrative examples, this approach can be strikingly effective. In scenarios where a scheme has hundreds of members with incomplete contact details, AI-driven methods can identify a significant portion of members using only minimal data such as name, date of birth, or past employer. Some members might be located despite having no formal contact information, perhaps through digital traces in public records or less conventional sources such as social media footprints and in one case we’ve seen… a small obituary in a local paper. These members can then be reconnected with their pensions, and instances of overpayments or administrative errors can be resolved protecting scheme assets while safeguarding members’ entitlements.
What sets this concept apart is the integration of technology with industry expertise and regulatory awareness. AI alone is not enough; it must be applied within a structured, compliant framework that prioritises members and manages risk. Schemes adopting this approach can improve data quality, reduce liabilities, and enhance member trust, all while meeting regulatory expectations.
For trustees and scheme managers, the lesson is clear: reconnecting members with lost pensions is more than a compliance exercise. A single reunited pension pot can transform a retirement, prevent financial hardship, and restore dignity at a critical stage of life. For schemes, it improves data integrity, reduces risk, and strengthens trust.
By combining modern technology with pensions expertise and a member-first ethos, schemes can set a new standard in reconnecting members with their entitlements. Whether it is one member or many, the principle remains the same: lost pensions should be found, returned with care, and managed with integrity for the benefit of both members and the schemes that serve them.
Mark Stoppard, Head or Proposition Development – Zedra Governance
