Raindrop FOI Reveals Over Half of UK Pension Schemes Fail Data Accuracy Tests

Quick Summary

A pension tracing solution analysis reveals that only 48% of UK pension schemes accurately maintain member data. This data gap, uncovered via FOI requests to The Pensions Regulator, contributes to the £31.1 billion currently sitting in lost pension pots across 3.3 million accounts nationwide.

How Does Poor Data Quality Impact Pension Savers?

Inaccurate member records directly increase the risk of savers losing access to their retirement funds. When a pension tracing solution is not utilized effectively, schemes fail to maintain "common data" like contact details and "scheme-specific data" such as salary history. This systemic failure means that over 50% of schemes are currently operating with incomplete information.

• 48% of schemes completed both required data assessments in 2025.
• £31.1 billion remains unclaimed in lost UK pension pots.
• 3.3 million pots are currently considered misplaced.

Why Are Smaller Pension Schemes Lagging Behind?

Occupational DC micro schemes show significantly lower compliance rates compared to larger counterparts. Only 21% of micro schemes completed necessary data quality assessments between 2023 and 2025. This suggests that smaller providers lack the automated tracing technology required to keep pace with a mobile workforce. By failing to update national insurance numbers and contact details, these schemes inadvertently contribute to the growing mountain of dormant assets that a pension tracing solution is designed to recover.

What Results Has Raindrop Delivered for the Industry?

Raindrop's proprietary technology has successfully located over £1.6 billion in assets since its inception. By partnering with major institutions like Aegon, AJ Bell, and Monzo, the platform bridges the gap between inaccurate scheme data and the modern consumer.

• 166,000 forgotten pensions have been identified to date.
• Direct API integrations help providers offer simple consolidation tools.
• Enhanced member engagement is achieved through accurate risk appetite insights.

"Dormant pots remain a huge problem in the UK and savers need greater support from schemes to help them keep track of all their retirement savings." said Vivan Shridharani, Co-Founder & CCO at Raindrop.

FF NEWS TAKE:

This FOI data is a wake-up call for the UK retirement industry. While a pension tracing solution like Raindrop provides a vital safety net, the fact that more than half of schemes are failing basic data hygiene is unacceptable in a digital-first economy. As the Pensions Dashboards Programme nears, providers must prioritize data accuracy or risk significant regulatory backlash and lost consumer trust. This moves the needle by highlighting the urgent need for automated data remediation.