Consolidating all your pensions with one pension provider is an easy enough process but one that should not be taken lightly until there has been a full analysis beforehand and financial advice has been given.
Transferring or consolidating your pension(s)
The reasons for pension consolidation are plentiful and here are just a few of them:
- You have left your old job for a new one with a different employer who more than likely will have a different workplace pension scheme.
- Over the years you have accumulated more than one pension pot and now want to bring them all under one roof to manage them more effectively.
- You want access to more investment options.
- Your pension scheme, past or present, has been closed.
- You want 24/7 access to your pension investments.
- You may want all your investments in one place including not just your Pension but also your ISAs and General Investment Accounts as well.
- It could be that you’re moving abroad.
- Other pension providers could be offering better value for money.
- You’re fed up with your pension provider being sold to another without any decision-making input from you.
- You want less paperwork and administration.
Things to think about...
- It’s unlikely that you should transfer your Defined Benefit (Final Salary) Pension Scheme to another provider although in very few cases there are mitigating circumstances.
- You need to make sure that when you consolidate or transfer your pension to a new provider, you don’t give up valuable guaranteed benefits or get hit with hefty exit/surrender charges.
- As with all investments, the value of your pension can go down as well as up so you may get back less than you put in.