Affluent UK savers are missing out on tens of thousands of pounds through losing track of financial assets, according to research from wealth manager Netwealth.
The findings show that, on average, these UK savers are now accumulating four different money pots in their lifetimes. However, the survey found that a large proportion of these accounts are not being drawn from due to people forgetting or losing track of historic assets that have been set aside, as well as being unsure how to go about accessing them.
The value of these lost investments is sizeable, with over a quarter (28%) of respondents losing £50,000 ($62,000, €56,000) or more in self-invested personal pensions (Sipps), and at least a fifth losing the same amount in Isas (23%) and savings accounts (20%).
The affluent saver in the UK has on average lost access to between £20,000-30,000, spanning various types of financial accounts including Sipps, workplace pensions, Isas, savings accounts, and premium bonds. Many investors have lost substantially more.
Charlotte Ransom, chief executive and founder of Netwealth, said: “In the current climate of high inflation and volatile markets, it is particularly important for consumers to gain access to any forgotten or lost funds. Our findings show that the value of these forgotten assets is substantial and could have a transformative impact for their rightful owners.
“In addition, having a clear view of your wealth in aggregate is essential for accurate and successful financial planning to reach your monetary goals for the future and ensure you are prepared for key milestones, including retirement and inheritance planning.”
Number of lost assets on the rise
Increasing numbers of affluent savers are failing to track their wealth, with three out of five (60%) saying that they have failed to recover access to some type of financial account that they owned.
Only 37% of respondents stated that they have not lost track of any financial assets.
Multiple barriers to accessing these pots were cited by respondents, with 38% stating that the process takes too much time and hassle, with others being either unsure how to obtain the information needed (33%) or saying that they have no means of finding their lost accounts (30%).
Ransom added: “The very high number of people struggling to track down all of their financial assets is deeply worrying. More needs to be done to ensure savers can easily find and access their investments and, ideally, view them holistically.”
Some 1,000 UK adults were surveyed, with at least £100,000 of investable assets excluding property and pensions.
