Consolidating your pensions

Consolidate Your Pensions

If you have a number of pension funds consolidating your pensions into one place could be helpful if you want to have more control and a better understanding of what your retirement income will be when you retire – it could also lower costs and/or enable you to invest in better performing funds.

It can take many, many years to build a meaningful pension pot, and during that time you may have changed jobs, with old pension schemes not running to their best potential or not having access to better funds. This can mean that you have multiple Pensions, with multiple charges, in old investment funds.

Pension consolidation is the process of merging your Pension pots into one Pension. This means you can see performance in one place, giving you a better understanding of how you are progressing towards your retirement goals and it can also mean lower charges and greater returns putting yourself into a better place when you come to retire.

Some Pensions may have exit fees and some provide valuable guarantees, such as guaranteed annuity rates, protected higher tax-free cash percentages and protected retirement ages, so it is important to be sure that you are not giving up valuable guarantees by consolidating, on the other hand these guarantees may be worth less than at first sight. Some plans, often workplace schemes, also benefit from low charges that cannot be matched elsewhere. These guarantees and benefits could be lost if transferred and therefore Pension consolidation is not right for everyone.

The benefits of Pension consolidation are:

– Having all of your Pensions in one place makes it easier for you to understand your true progress towards retirement. Being in one place could offer the potential for greater growth over the long-term, and you will potentially be paying less in fees and/or achieving better performance

– If you have several Pensions Plans you may be invested in the wrong risk category or in old, expensive and poorly performing funds. Having one Pension will give you a clearer view of what is really happening,  how your pension is performing and what you income will really be when you want to retire.

Ensure your Pensions match your personal attitude to risk. Ensure your investments are diversified. A globally diversified Investment Portfolio means your eggs are not all in one basket. Most Pension funds are poorly diversified.

You are less likely to lose your Pensions if they are all in one place. Currently in the UK there are three million Pension Funds not matched to their owner, with an estimated value of £26.6 Billion.

If you think you may have some lost Pensions, then we may be able to help you find them.

Contact our pension experts today to find out more, they will be happy to discuss in some detail what your objectives are with no fee until such a time as you tell us you want us to act on your behalf.


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Woody Snapper

Woody works with individuals and business' looking for corporate finance, high net worth mortgages, complex loans, bridging loans and development finance.

To contact Woody.

Tel: 07922 413586