Should I get all my pensions in one place?

Keeping track of your retirement savings is not always easy

Are you worried about losing touch with your pension savings provider? Increasingly, with more people changing jobs multiple times before retirement, it can be easy to lose track of your hard-earned savings. By taking a few simple precautions, you can help ensure that your savings are always accessible and secure.

Make sure to keep your pension provider updated with your contact information, even if you switch jobs or move homes. This will ensure that you receive important updates about your pension and can easily access your savings when you need them.

Stay informed about your pension options and take advantage of any employer contributions or tax benefits available to you. By taking these steps, you can help ensure a secure and comfortable retirement.

Valuable pension savings
Additionally, if appropriate it may be worth considering consolidating your defined contribution pension pots if you have savings with multiple providers. This can make it easier to keep track of your savings and could save you money in fees.

Having said this, not all pension types can or should be transferred. It’s important to obtain professional advice so you know and can compare the features and benefits of the plan(s) you are thinking of transferring.

What is pension consolidation?
Pension consolidation is the process of combining multiple pension pots into one single pot. This can be done with a pension transfer or by opening a new pension and transferring your other pensions into it. You may want to do this to make it easier to keep track of your retirement savings, or to try and get a better rate of return on your investment.

But there are a number of things to consider before consolidating your pensions, such as any exit fees that may be charged, and whether or not you will lose any valuable benefits such as guaranteed annuity rates.

Should I combine my pensions into one pot?

Reasons why you might want to consolidate your pensions:

Simplify your finances: If you have multiple pension pots, it may be difficult to keep track of them all. Consolidating your pensions into one pot could make it easier to manage your retirement savings.

Save on fees: If you have multiple pensions with different providers, you may be paying multiple annual fees. Consolidating your pensions may help you save money on fees.

Get better investment options: Some pension providers offer a limited number of investment options. Consolidating your pensions could give you access to a wider range of investments.

Reasons why you may not want to consolidate your pensions
Loss of valuable benefits: One key disadvantage is that you may lose out on valuable benefits that are specific to certain pension schemes. For example, some schemes may offer better death benefits than others, so consolidating your pensions into one pot could mean giving up this valuable protection.

Paying higher fees: Another potential downside is that some schemes may have higher charges than you are actually currently paying, which means you would end up paying higher fees. This is something that needs to be carefully considered before making any decisions.

More difficult to access: It’s important to remember that once you consolidate your pensions, it may be more difficult to access them early if you need the money for an emergency. This is something that should be taken into account when making any decisions about pension consolidation.

Transferring pension plans will not be right for everyone – you’ll need to consider all the facts and decide if it’s right for you. You could lose money by giving up any guarantees or benefits you might get from your other pension plans. There’s no guarantee that you’ll get more as a result of transferring.

Big targets for fraudsters
Finally, one thing you also need to bear in mind is that pension savings are big targets for fraudsters. If someone contacts you unexpectedly offering to help you transfer your pot, it’s likely to be a scam. If you’re concerned, contact the Financial Conduct Authority (FCA) to check they’re legitimate.

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