14th November 2017 at 11:00am
Having a pension can be a great way to save for retirement, but it’s important to check it’s working hard to make your future plans a reality.
And that can be tricky if you have multiple pensions.
There are ways to make your retirement planning simpler
These days most people have several jobs throughout their lives and multiple career moves mean many of us end up with numerous pensions along the way.
Consolidating pensions is becoming increasingly common, as people seek ways to simplify their retirement planning.
As a result, consolidating pensions is becoming increasingly common, as people seek ways to simplify their retirement planning.
Is transferring everything into one easy-to-manage pension the way to go?
It can certainly make managing them much easier, and in some cases cheaper, depending upon the type of pension.
If you’re not keen on managing multiple pensions and wading through paperwork, one pension could give you one log-in, one password and one set of paperwork, making it much easier to track and manage.
When it’s time to start taking your money you’ll only have one pension company to deal with and, if you choose to dip into your pension pot, it’ll be much easier for you to see how much is left to play with.
Check if it’s right for you
Whilst there are advantages to switching pensions, it might not make sense for everyone.
If you’re thinking about bringing together your plans, it’s important to first establish what you would be giving up and what you would get in return.
You need to make sure you won’t lose any valuable benefits or guarantees associated with your other pension and there’s no guarantee you would get more as a result of transferring your funds.
If you’re unsure ask your financial adviser.
Not all pension plans are the same. Some give their members certain guarantees or rights, such as investment guarantees.
Others will have different rules about when you can retire or what protection is available to your dependants.
You should also take a look at your charges and investments, as it’s always worth checking you’re getting a good deal.
Your pension transfer checklist
We know there’s a lot to think about, and we can help.
We’ll be running a special feature in MoneyPlus ‘Things to consider when transferring a pension’.
Our checklist will give you details of the valuable benefits and guarantees to look out for; arming you with the information you’ll need beforehand to help make an informed decision.
If you decide to bring your pensions together, it can be pretty exciting to see how much you’ve already saved for your future and to see it all in one place might bring you some peace of mind too.
But remember – do your checks first. Watch out for our up and coming feature for more information.
The information in this blog or any response to comments should not be taken as financial advice.
Laws and tax rules may change in the future.
A pension is an investment and you may get less back than you paid into it.
The information here is based on our understanding in July 2017