Should I Consolidate My Pension?

Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.

Should I Consolidate My Pension?

You may reach a time in your life where you realise you’ve paid into several different pensions over the years and you might find yourself drowning under paperwork as a result. If this is the case, there’s a good chance you’ll end up asking the question ‘should I consolidate my pension into one pot?’ …we’re on hand to explain your options.

It could make it easier to keep track of your Pension

Even if you have brilliant maths skills, it can be a tricky task keeping track of how much you have saved for your retirement if you have several pension pots.

Consolidate your pensions and you’ll only need to focus on a single pot and its performance. Furthermore, it will mean that you can better manage the overall level of risk that you’re taking, as well as giving you peace of mind that you’re not over-exposed in a type of asset or just the one market.

Of course, being better aware of how much is in your pension pot will mean you will be in a more favourable position to react if you begin to have concerns that you’re under-saving.

You could get a better return on your investment

With investment performance often one of the biggest factors when it comes to how large your pension income could be when you retire, it makes sense that you’ll want to avoid under-performing pension schemes.

Choose to consolidate your pensions and you’ll be able to identify the schemes which are providing you with better investment options compared to those which are delivering poor or even non-existent returns.

Bringing all your pension pots together should also see you moving your funds into a plan that is more suited to your investment outlook and appetite for risk.

The fees you pay will likely reduce

Some pension providers attach various fees to their pension schemes, such as fund fees, contribution fees and inactivity fees. It can sometimes be difficult to monitor the fees attached to just one pension pot — have various pension schemes set up though and you could be paying the same fee multiple times.

By consolidating your pensions into just the single scheme you’ll be able to know exactly how much of your funds are going towards covering the fees.

Hoping to begin consolidating your pensions without delay? We only require around ten minutes of your time to gather the details we need to get your pensions transfer underway — we’ll do all the work for you after that.

Your capital is at risk. This information does not constitute investment advice. Investments can fluctuate in value and you may not get back the amount you invest. Past performance is not a guide to future performance. Tax rules can change at any time.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.

Personal Finance