Pension savers warned of 'major' issue that could cost them in retirement

savers who may have lost sight of a pot are being urged to track it down as billions remain unclaimed. One in five (21%) Britons who took part in Hargreaves Lansdown's latest survey admitted they had lost track of a pension, while a further 18% said they're unsure if they had.

Losing track of a pension can mean you are potentially losing out on thousands of pounds that could be used towards your retirement. According to the Pensions Policy Institute, there are now an estimated 3.3 million lost pensions containing £31.1billion worth of assets. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: "If you've worked for a few different companies during your career, then the chances are you have lost track of a pension.

"You've paid into it for a while, but then moved jobs, and as time has gone on, you haven't kept your contact details up to date. Before you know it, you've stopped getting statements without even realising."

However, the pensions expert warned: "It's easily done, but it can have a major impact on your retirement planning."

She noted that even the smallest pensions can grow over time, and that the pension you paid into a decade or more ago could well have grown a "decent amount."

For example, a £10,000 pension pot would be worth more than £16,400 after 10 years if it grew at 5% per year.

Ms Morrissey said: "This could play an important role in your retirement income. With 21% of people admitting to having lost track of a pension and a further 18% being unsure if they have, it's a major issue. The good news is that you can do something about it."

Those who think they've lost track of a pension can contact the Government's Pension Tracing Helpline. You'll need either the name of the employer or the pension provider. The helpline will then be able to provide contact details so you can get in touch.

People can also use other free pension tracing services, such as .

Ms Morrissey said: "Once you have a better idea of the total held in your pension, you can make a plan to hit your goals."

Should I consolidate my pension?

Once you've tracked down all your pensions, you may decide that you want to consolidate them.

Ms Morrissey said: "This can cut down on time, admin and fees - it can also help you make better retirement decisions. For instance, if you have three small pension pots, you may be tempted to take them as cash and spend them. However, if they are consolidated into one pot, then you are less likely to do this."

However, the retirement expert noted there are things to consider before consolidating.

Firstly, she said: "It rarely makes sense to transfer a defined benefit pension due to valuable guarantees in place. You may also find that you potentially incur expensive exit fees by consolidating.

"Other older pension plans also contain valuable benefits, such as guaranteed annuity rates that you would lose by consolidating. It's always a good idea to check for these things before taking the decision to consolidate."