Over the years many of us build up a number of pension pots with different employers and providers. And although sometimes having lots of different pension pots invested might be good news for your money, it might also make keeping track of things a bit tricky.
Whether or not to combine your pension pots isn’t a simple decision however. There’s lots to consider.
Combining your pensions - Let's dig a little deeper
You can combine your pension pots at any time. Some people do it when they’re closer to retirement or even when they’re starting a new job. But you can combine at any time you like – so now might be the perfect time to find out if it’s right for you?
There are many things to consider when looking to combine your pensions, such as the types of pensions you hold. Some advisers can look at them all - from a personal pension through to a defined benefits company pension (which also may be known as final salary pension).
Your existing pensions may have valuable guarantees that you could lose if you transfer out of the scheme, your current pension may have higher or lower product charges, and there may also be charges to transfer your pension to a new company. You should also consider which death benefits are already in place.
We know it could get complicated, and that it’s also not right for everyone. Sometimes staying where you are is best.
With an adviser on hand at every turn, you can find out if combining your pension pots is right for you. Even just the process of checking this can be helpful. That’s because an adviser can review and explain everything you have. So, whether you move pensions or not, by just discussing it with an adviser you’ll probably have a much clearer picture of exactly what you have and what you might get when you retire.
Support at every step
If you don’t already have a financial adviser, don’t worry. You can talk to one of ours about the pension pots you currently have. They’ll get the ball rolling to give you a picture of all your pensions and help you understand if combining them is right for you.
Find out more about our Financial AdviceAre you in the right funds?
Your circumstances or the level of risk you’re happy with may change over time – so it’s worth checking that the funds you’re invested in are still right for you. Combining pension pots could give you access to a new or wider range of funds.
Combining your pensions - Mythbusters
That’s why you need to speak to an adviser. They’ll cut through all the jargon and make sure their recommendation is right for you. They do all the hard work so you don’t have to.
An adviser will review all of your pensions and also let you know what to do to track down any others from old employers. They'll then usually explain what you have and recommend if combining any pension pots is right for you.
We’ve got advisers all over the UK, so there’ll be one near you who can help – simply get in touch. They’ll help you understand your retirement options and advise if combining pension pots is right for you.
Where can I learn more?
Find an independant financial adviser in your area to help you in your future pension planning.
Visit
www.unbiased.co.uk
and enter your postcode.
We recommend you use Pension Wise, a free impartial guidance service from the government to help you understand your options at retirement.
Visit pensionwise.gov.uk or call 0300 330 1001 to book a phone or face-to-face appointment.
Visit www.hmrc.gov.uk to get information on tax rules and legislation which may affect you if you have a pension plan or looking to access your options.