By the time you have been working for a number of years, you may have accumulated a number of different pensions from previous employers and it can be hard to keep track of these pots. Having all these separate pension pots may not be the most efficient way of managing your retirement savings. Pension consolidation involves bringing all of your separate pension plans together and combining them into one single pension pot.
Consolidating your pensions into one pension wrapper can make keeping track of your pensions savings more easy, you can keep a closer eye on the value of your savings and it could also potentially reduce the amount of management fees you are paying. It will also make things much easier when you eventually retire and want to start drawing on your pension savings.
However if you are thinking about consolidating your pension pots it is important to check whether there are any termination penalties on the account, whether you will you miss out on loyalty bonuses, or whether the transfer will result in any adverse consequences.
An independent financial adviser (IFA) will be able to help you assess if you should consolidate your pension pots, whether they should all be consolidated and if the adviser can even undertake the consolidation on your behalf. Find a financial adviser here.
Questions you might like to ask a financial adviser…
- How much will it cost to consolidate all my pension plans?
- Does there need to be a certain value for my pensions to consolidate them?
- Are there any advantages to keeping the pots separate?
- Does there need to be a certain value for my pension to purchase an annuity?