What is pension consolidation?

Someone told me I should consider consolidating my pensions because it makes it cheaper. What is pension consolidation, how does it work?

Question asked by Sarah Smith
Are You Pension Happy?
Call us on 02084327334
I know how much my pension is worth
I know how much my pension costs
I have clear financial goals for my retirement

Answered by Neil Adams

If you’ve started several different pensions over the years, perhaps because you’ve worked for a number of different employers, you might want to think about consolidating these pensions into one scheme.

The advantage of pension consolidation is that it is easier to manage your pension and keep track of how your investments are performing. It also provides an opportunity to review the performance of the funds your pension is invested and determine whether you are happy with the level of risk being taken. In addition, it is often possible to gain lower platform fees by consolidating.

You can arrange this by contacting your pension providers directly to arrange a switch or transfer to a new arrangement. However, be very careful before moving your pensions. Many older final salary pension arrangements may contain valuable guarantees which will be lost on transferring to a new arrangement.

You should also check for any exit penalties or fees that apply, as these could eat into your retirement savings.

It is always recommended you seek professional pension advice before proceeding. The cost of advice usually outweighs any potential loss in benefits. Please contact us if you would like find out more about how Drewberry Wealth can help, or for further information you may find our pension consolidation case study useful.

pension consolidation
 
pension transfer
 
retirement planning
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

 
Could you help explain the difference between pension fund values and pension transfer values...
 
I smoke around 15 cigarettes per day. I’ve been charged more for Life Insurance in the past because...
 
I’m approaching retirement and I’m confused about my options. I’ve seen that one possibility...
 
I’m looking to start up a pension, but all I can seem to find are defined contribution pensions....
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Trevor Massey
22/01/2019

Excellent service from start to finish. Both Jack & Jake were both helpful and polite through the process. I would recommend Drewberry to family and friends.

Adriana Fouche
31/01/2019

Oliver was great at explaining things, with patience. He called back when he said he would, and spent a lot of time to make sure the policy meets my needs.

Robin Condliffe
12/02/2019

Victoria Slade has been consistently prompt, personable, efficient and a great communicator. It is the first time that we have had straightforward dealings with financial services since becoming qualified doctors 20 years ago. Well done!

We are rated 4.9/5 based on 2024 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
2024 Reviews
H CONDLIFFE
Overall Rating
Victoria Slade has been consistently prompt, personable, efficient and a greta communicator. It is the first time that we have had straightforward dealings with financial services since becoming qualified Drs 20 years ago. Well done!
K Szymkiewicz
Overall Rating
Rauri Taylor is Independent Protection Expert who you want to help you with any Pensions, Investments & Insurance. He helped me made right choice.
S Brocklehurst
Overall Rating
Professional service, Oliver seemed genuinely interested in getting the right product for me. I was given plenty of options and everything was described fully when required. I felt no pressure to purchase a product.
G Bigga
Overall Rating
Helpful, knowledgeable and efficient and able to find great prices. I would highly recommend
N Lawton
Overall Rating
Everything was very well organised. Sam took the time to explain all of the options very thoroughly so that I could choose the right policy.