Underscreening is a collective term for charge correlations in electrolytes decaying slower than the Debye length. Anomalous underscreening refers to phenomenology that cannot be attributed alone to steric interactions. Experiments with concentrated electrolytes and ionic fluids report anomalous underscreening, which so far has not been observed in simulation. We present Molecular Dynamics simulation results exhibiting anomalous underscreening that can be connected to cluster formation. A theory that accounts for ion pairing confirms the trend. Our results challenge the classic understanding of dense electrolytes impacting the design of technologies for energy storage and conversion.