Combining Pension Pots

Very few of us remain in the same job from school to retirement, and that can result in several different pension pots. Combining them all can make financial sense, but only if it is handled in the right way. Our pension advice can help you with that.

Things to be aware of when combining pensions

The downside of combining pension pots include exit penalties, guarantees which will be lost on transfer, expensive pension advice, or a mistake resulting in higher pension charges. The path you decide to take with your pension savings will depend on what kind of pension you have. When you are moving between pension schemes always be aware of the benefits that you are giving up. You may need a high level of investment return to match what is provided by your current pension scheme.

Other types of pensions, such as money purchase, occupational schemes, or personal pensions may be worth combining into one place. This type of pension relies heavily on contributions and investment growth to build up a pension fund. By bringing these pensions under one roof, you can benefit from lower charges as well as boosting fund performance. You will also be able to keep a clear eye of your pension performance.

Finding a new pension

Combining your pension pots is an excellent opportunity to get the most suitable pension scheme possible. It is worth considering what the annual management charges are, how you could save on them, the investment performance of the fund and any future exit fees. Some pension investors like the freedom to choose their funds, using self-invested personal pensions.

Combining your pension pots, even if they're small pension pots, is an ideal opportunity to seek pension advice. Remember, a good financial adviser should make your retirement much more manageable by finding the best pension investment possible. If you need help combining your pensions pots, please fill in a free enquiry form and a specialist pensions adviser will contact you.

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