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
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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.
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Neil
Pensions

Victoria
Insurance
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