Pension Consolidation

Our team consists of seasoned professionals with extensive knowledge of Inheritance Tax laws.

We focus on forward-thinking strategies to mitigate the impact of tax.

We ensure clear and straightforward communication, keeping you informed every step of the way.

If you decide to consolidate your pensions, you can use a multi-manager, risk-targeted investment strategy, allowing you and your adviser greater control over your pension pot. As you progress through your working life, your objectives will likely evolve, and having increased control over your investments will enable you and your adviser to adjust your investment strategy in response to changing circumstances. This adaptability can enhance the value of your savings as you approach retirement. It’s important to remember that the value of an investment and any income derived from it can fluctuate, and you may not recover the total amount initially invested.

It is simpler to manage a single pension pot than multiple pots, as overseeing a pension involves more than just checking its annual value; it is wise to evaluate whether your investment strategy aligns with your goals routinely. Your objectives will naturally evolve, particularly as you approach retirement, and your risk tolerance may shift with age, making it essential to periodically reassess your investment approach to ensure it remains appropriately balanced. Although it is only legally mandated if you intend to transfer Safeguarded Benefits, seeking professional advice before withdrawing funds from your pension pot is prudent; attempting to draw from multiple pots complicates matters since you would need individual guidance for each one.

There’s a significant risk of losing track of your pensions if you hold multiple accounts with different providers. It’s essential to let each of your pension providers know when you change your address to make sure they can reach you. Since you typically only receive communications from your providers once a year, it’s easy to overlook important information if you must be more diligent with your records. By consolidating your pension pots, you can effectively minimise this risk and keep better track of your retirement savings.

It’s advisable to consolidate your pensions before retirement, but there are situations where there may be better choices than this. Reasons not to consolidate your pensions include having a pension with a guaranteed annuity rate, which entitles you to purchase an annuity that provides a higher annual income than what is typically available on the open market; potential penalties for transferring your pension, which could lower your transfer value compared to the current value of your pension; and the possibility that your pension includes additional guarantees that could affect the final value of your savings upon retirement, such as traditional with-profits bonuses, loyalty bonuses, or safeguarded benefits.