Consolidate Your Pensions
It’s hard to monitor and manage multiple pension pots. Consolidate your pensions to ensure your investment strategy is suitable, your investment performance is good, to reduce your admin burden and reduce your costs.
Consolidate Multiple Pensions
- Reduce the fees you currently pay on your multiple pension pots.
- Your risk appetite and time horizon should drive your optimal investment strategy. If all your pension savings under one roof it’s easier to make sure your investments are suitable and to check that your investment performance is good.
- Easy to change your investment strategy as your needs change.
- Reduce the time and effort you expend on administration.
- Easy to monitor your pension savings and make sure that your savings are on track to give you enough income when your retire.
Independent Financial Advice
Reduce your fees.
Take control of your investments.
Reduce the time you spend on administration.
Make it easier to monitor your savings.
“We give candid, impartial, effective, plain English financial advice.”
FT Adviser, November 2019
Frequently Asked Questions
The information provided in these FAQs does not constitute professional financial advice. We strongly recommended that you consult a professional adviser before proceeding with a financial transaction.
Can I save money if I combine my pensions?
Every pension you have will be managed separately. Each pension will have its own fees. Some of these fees may be higher than others. If you consolidate your multiple pensions pots in one pension with one management fee, you could save money. Compound interest makes a small saving made now into a big gain in the value of your savings when you retire.
Will my savings do better if I combine my pension pots?
If you consolidate your pensions you’ll have the freedom to use a multi-manager, risk targeted investment strategy. This approach gives you and your adviser much more control over your pension pot.
It’s inevitable that your objectives will change as you move through your working life. More control over your investments will make it easier for you and your adviser to adapt your investment strategy as your circumstances change, and this flexibility will potentially improve the value of your savings when you retire.
The value of an investment and any income from it may fall as well as rise, and you may not get back the full amount you invest.
Will combining my pension pots make it easier to monitor my pensions?
It’s easier to monitor one pension pot than multiple pension pots. Managing a pension pot involves more than just checking how much it’s worth once a year. It’s sensible to carry out a regular check to make sure your investments use the right strategy to meet your objectives.
Your objectives will inevitably change over time, especially as you get close to the day you plan to retire. Similarly, your appetite for risk may change as you get older, so you should regularly review your investment strategy to make sure it’s neither too adventurous nor too cautious.
It’s not legally required (unless you plan to transfer Safeguarded Benefits) but it’s prudent to take professional advice before you draw money from your pension pot. This makes it impractical to draw a pension from multiple pension pots because you’d need separate advice for each pot.
Will combining my pension pots make it easier for me to keep track of my pensions?
There’s a high-risk that you will lose track of a pension if you have multiple pensions with different providers. When you change your address you must tell all your pension providers so that they know where to contact you. You only hear from your pension providers perhaps once a year, and if you’re not careful with your paperwork, it’s easy to miss one. When you consolidate your pension pots this risk is potentially eliminated.
Are there any reasons not to combine my multiple pension pots?
It’s wise to consolidate your pensions before retire. However, there are some circumstances when it isn’t the best option. Some reasons not to consolidate your pensions include:
- You have a pension with a guaranteed annuity rate (GAR). This gives you the legal right to buy an annuity which pays a higher annual income than would be offered on the open market. It might not be clear from your pension paperwork whether you have a GAR, but we can check this for you.
- There may be penalties to transfer your pension. This means your transfer value could be less than the current value of your pension.
- Your pension may include other guarantees which will have an impact on the final value of your savings when you retire e.g. traditional with profits bonuses, loyalty bonuses or safeguarded benefits.