There are several benefits to consolidating your pension. Amongst others, some of the main advantages include the freedom to choose a provider and a higher potential for return. It is not just easier to manage a pension when it is in one place, it is also financially beneficial if the new pension pot has lower costs.
However, there are numerous factors to consider when combining your pension, including whether you are in a defined benefit pension scheme or if they offer Guaranteed Annuity Rates. An FCA regulated financial adviser can discuss your unique situation, then advise you on which course of action is best for you.
Consolidating pension pots is defined by collecting your retirement savings into one pension scheme, to ensure that your fund receives the best benefits. Over the course of someone’s career, the average person will have between 10 and 15 jobs, making it easy to lose track of previous pension pots that get left behind. Each provider will offer different investment benefits, so combining your pension into one profitable fund can increase the reward. Put simply, the more you have the more you will make in return.
A common question I get asked is "what is pension consolidation?". When we change jobs and turn our focus to new employment, our pension savings are usually at the back of our minds. However, when you come to retire it can be difficult to collect all your different pension pots.
I can help you devise a pension consolidation plan based on your investment goals and living standard for retirement. With many options available, finding the best UK pension schemes can feel impossible - but I am here to help.
To discuss how a pension consolidation can benefit you financially, contact Michael Reed Wealth Management today.
Should I consolidate my pensions?
Reasons to combine your pensions may include:
- Lower Fees
- Achieving better performance
- Easier administration to keep track of your pensions
- Less hassle of dealing with multiple providers