What is pension consolidation?
Pension consolidation simply is “combining all (or most) of your pension pots into one”. Over your career you would have most likely worked for different employers, and built up a collection of different pension pots and/or pension schemes. Whenever is the right time for you, you will have to decide whether to consolidate all your pensions or leave them separate.
Working out the best thing to do with depend on a various factors: what type of pensions they are, how much they are worth, how well they are being managed, and whether they currently have any special guarantees attached. Here are some of the things to think about and discuss with your Bulbfin adviser.
Should you consolidate your pensions?
Reasons to combine your pensions may include:
1. Saving money
2. Achieving better growth
3. Convenience
4. Keeping track of your pension savings
Can you save money by combining pensions?
Every pension pot you have will be managed separately, meaning each one has its own annual management fees. Combining your pots into the one with the smallest management fees can reduce management fees.
Can you achieve better growth by merging pensions?
Fund performance can be an important factor in deciding whether to combine pensions. If you have several pots, it’s likely that one will have outperformed the. Your Bulbfin financial adviser may recommend a whole new fund.
Are there any reasons not to combine your pensions?
Consolidating your pensions before retirement is usually a wise move. However, there are some circumstances in which it isn’t the best option. Your Bulbfin adviser will be able to advise you about what you should do.
How do you decide about combining my pensions?
Once again, your Bulbfin adviser will give you clear and unbiased recommendation, based on what you want from your retirement. There is no universal right answer when it comes to transferring pensions, which is why tailored advice is so important.