Over a third of UK employees risk ID theft

Dentists and TV Licensing Authority told of new address details ahead of pensions providers.

UK employeesí worrying disregard towards their retirement is highlighted by over a third not notifying pension providers of new addresses, according to research out today from Aon Consulting, a leading pension, benefits and HR consulting firm. The research revealed that people were more likely to inform their dentist or the TV Licensing Authority of new addresses than their pension provider.

Some 36% of people with private sector pensions that have moved since 1996 have not passed details of their most recent house move to pension providers, according to the Aon Consulting survey of 1,204 working adults. Failure to update pension providers promptly on moving house significantly increases the risk that they lose touch with the provider and never claim their pension. However, this also risks pension details falling into the wrong hands and leading to ID fraud.

The survey found that two thirds of people had moved house in the past 10 years, and more than a quarter in the past two years. Despite pensions being many peopleís most valuable asset, the survey showed pension providers were ranked seventh out of ten groups to pass on new address details to. Banks and credit card companies (97%), employers (90%) and utility companies (87%) were most likely to be informed of new address details.



Base: Workers with pensions other than state scheme who have moved in past 10 years

Not surprisingly, the younger generation is least likely to have informed their pension provider if they moved house. Over half (57%) of under 35 year olds had passed on details of their new home in comparison to nearly three quarters (73%) of those over 55. Although older employees are more conscious of having access to their pensions pot, it is concerning that not all pension providers have up to date details for a significant number of members close to retirement age.

Commenting on these results, Paul Macro, head of defined contribution at Aon Consulting, said: ìWe have already seen that people are refusing to take responsibility for their own retirement by relying on others to support them. This research reinforces the fact that people are not facing up to the reality of financing their retirement. People simply canít afford to lose pensions that they are entitled to or risk pension details getting into the wrong hands.

ìOne of the extra responsibilities for workers in a defined contribution pension world is to regularly review that the performance of all of their pension funds are sufficient to provide their overall targeted level of income in retirement. They can only do this with regularly updated pension information.

ìWhat is most alarming, the survey shows that even some people near their retirement age are not keeping contact with their pension provider as a top priority. No matter what a personís age, pensions should be up there on the list of priorities with employers and the banks, not in the same bracket as motoring organisations and magazine subscriptions.î