Raindrop Research Reveals 82% of Pension Providers See Surging Demand for Tracing Tools

Pension providers are facing a significant commercial threat as 82% report a surge in demand for pension tracing, yet many are failing to deliver. With 70% of providers losing members to competitors who offer better consolidation tools, the inability to manage lost assets is directly impacting assets under management and customer retention across the UK market.

What was announced

New research highlights a growing crisis in the UK pension sector, where an estimated 11 million adults have missing pension pots. This demand for tracing and consolidation is driven by acute financial pressures; 55% of savers are concerned they lack sufficient funds for retirement, while 27% believe they must find lost pots specifically to boost their savings. A further 27% of consumers are seeking consolidation to reduce fees and secure better value.

The scale of the challenge is significant, with Pensions Policy Institute (PPI) figures estimating £18.7 billion is currently sitting in lost pension pots. ONS data further suggests that £550 billion is held in dormant assets more broadly. Despite this, the industry is struggling with execution; only 49% of transfer requests are successfully completed on the first attempt. The primary obstacles cited for these failures include poor data quality, regulatory compliance checks requiring additional information, and general inaccuracies within the transfer process.

The commercial consequences for laggards are clear. Seven in ten pension providers admit they have lost scheme members to rivals with superior tracing capabilities. Furthermore, 67% of providers report a loss in assets under management because savers are increasingly willing to switch to platforms that offer effective, automated tools to manage their fragmented retirement savings.

"Demand for tracing tools is surging across the pensions sector as savers look for more support from their providers in tracking down lost assets. This is partly driven by the difficulties savers face when trying to track down lost pension pots by themselves, often without success."

Vivan Shridharani, Co-Founder and Chief Commercial Officer at Raindrop

The companies involved

Raindrop is a specialized pension-tracing platform designed to help savers and financial institutions locate and consolidate forgotten retirement assets. The fintech has established a significant footprint in the UK market, having found over £2 billion across more than 250,000 pensions since its inception. Raindrop provides the underlying technology for several major financial institutions, including AJ Bell, Monzo, and Aegon’s Mylo service, enabling these providers to offer automated tracing to their customer bases.

The company focuses on addressing the failures of legacy systems, which often lead to the slow and complicated transfer processes currently hampering the industry. By providing specialized technological solutions, Raindrop aims to bridge the gap between outdated provider data and the modern consumer's expectation for a seamless digital experience. FF News has tracked the company’s growth extensively, noting its increasing influence as a partner for both digital-first neobanks and established insurance giants looking to protect their market share.

What FF News has reported before

FF News has closely followed Raindrop’s trajectory as it scales its operations within the UK fintech ecosystem. In October 2026, we reported that Raindrop Hits £2 Billion Milestone as Pension-Finding Platform Reports 133% Growth, highlighting the rapid adoption of its technology. This followed our September coverage of the company’s expansion and leadership changes in Raindrop Recovers £2 Billion in Lost Pensions and Appoints Former Minister Guy Opperman. We also documented the practical application of their tech in August 2026, when Aegon’s Mylo Recovers £250 Million in Lost Pensions Using Raindrop Technology. Additionally, the company’s broader integration efforts were noted in June 2026 when TransferMate and Raindrop Systems Partner to Embed Global B2B Payments into Source-to-Pay Workflows.

What this means

The "sticky" nature of pension assets is being eroded by a combination of the cost-of-living crisis and the rise of slicker fintech alternatives. For years, legacy providers relied on customer inertia, but the fact that 70% of providers are now losing members to competitors over a single feature—pension tracing—suggests that inertia is no longer a viable defensive strategy. The 49% first-time success rate for transfers is a damning indictment of the industry's underlying data standards. As the sector moves toward greater transparency, providers that cannot solve their data quality issues will find themselves acting as involuntary donors of AUM to more agile, tech-enabled rivals.