If you’ve held multiple positions in your career, at various places, then you could easily lose track of your pensions. It can be hard work tracking down pensions from years ago but did you know you could end up paying more fees than necessary to multiple providers if you can’t find them to bring them all together?
This does not constitute advice and advice should be sought in all instances before acting on it.
Multiple providers equals more fees
People who move from job to job might end up acquiring multiple small pension pots, especially since auto-enrolment came into effect. Often, people don’t even think about getting their pensions sorted until their retirement is approaching. But by that time, it could be nearly impossible finding all the necessary paperwork or remembering the names of all the providers and schemes they’re invested in.
The government is in the process of building a Pensions Dashboard that will let people see all of their pensions in one place. As of right now, there is no date when the dashboard will be available to the public. Even when it debuts, the problem of people paying fees to multiple providers for all their pensions won’t be solved.
Get consolidating
Maybe you never thought to consolidate your pensions into one place or have no idea how to start gathering them up. It can be daunting trying to get all your pension pots together, but it’s important not to let any amount you’ve saved up go to waste because every little bit helps when it comes time to retirement.
The reality is that it’s down to you to consolidate your pensions, so speak to your financial adviser for advice on how to get started.
Compare features and benefits
Pension consolidation can provide several benefits. Sometimes, pensions can be confusing, making it hard for the average person to keep up, but with pension consolidation, combining some or all of your defined contributions in one place will help you stay on top of them. You’ll have fewer providers to deal with, less statements to keep up with, and possibly lower management fees, allowing you to save more of your hard-earned money.
Once you track down your various pensions, check if you can transfer them, as not all pension types can be transferred and sometimes your pension could be doing quite well with your original provider. But if you’re considering consolidation, it’s important to compare the features and benefits of all the different oness you have. It’s a big decision and it might be hard to determine if you’ll be better or worse off combining your pensions, but it’s not one you have to make on your own.
Get help staying on track
Seeking professional financial advice when you’re considering consolidating your pensions is a smart move. Whether you want to consolidate into an existing pension you already have or if you want to combine your pensions in a new one, we’re happy to help. Get in touch with us today to make sure your pension plans are on track for the retirement you want.
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