Retirement savers struggle to consolidate pension funds

Our latest research* shows that pension savers with multiple funds are struggling with consolidating pensions into one fund which could potentially reduce annual fees and save time on administration.

More than one in 10 (11%) pension savers with multiple schemes have tried to consolidate funds and failed while nearly two out of five (38%) admit they do not know how to consolidate pensions into one fund.

Here at iSIPP, we offer a wide range of fund choices and flexibility for UK and international customers looking to consolidate their pension funds through our growing ‘Create’ service, an option designed for those who want to make their own investment decisions when it comes to SIPPs.

The free to set up service has no dealing charges or charges to transfer in funds and enables clients to create their own portfolio, complementing our existing range of Ready-Made Funds from world-leading fund managers BlackRock and Schroders.

Just one in five (19%) of those questioned in our study say they have only ever had one pension fund, while another 19% say they have successfully consolidated pension funds in the past. More than half (52%) who have multiple pension schemes have not tried to consolidate.

Younger savers are more likely to have successfully consolidated funds – and more likely to have tried and failed. Around 26% of under-35s have moved their pensions into one pot while 13% have failed. Among the over-55s only 17% have consolidated funds while 5% have tried and failed.

Here at iSIPP, customers can sign up easily to transfer their existing pensions and consolidate funds into one pot, choose their preferred investment funds and monitor how they are performing 24/7 online, with complete transparency on fees and charges.

Our ‘Create’ option covers funds classed as a standard asset under FCA guidelines and investors have access to risk ratings and asset allocation information. Investors have flexible access to the investment platform through their iSIPP account.

Managing Director Hrishi Kulkarni said: “It is worrying that so many people have tried to consolidate their funds and failed and that so many don’t know how to do it.

“Funds available within the iSIPP ‘Create’ option provide clients more choice, control, and flexibility over their pension investments and crucially the service is easy to use.

“Consolidating all existing pensions into iSIPP will provide them single online pension account, simple and transparent fee to pay and full oversight of investment performance helping them to make more informed decisions moving forward suited to their own financial situation and retirement goals.”

The digital pension consolidation service is available to all customers with UK pension funds who are working or have worked in the UK. Our Ready-Made Portfolios include a range of fund choices from world-leading fund managers BlackRock and Schroders. BlackRock’s multi-asset, risk-managed MyMap range of funds are available which include an ESG fund and we also provide access to the Schroders’s Shariah compliant fund. Focusing on transparency, the annual trust fee is £200 plus a 0.25% platform services fee. Funds with OCF (Ongoing Charges Figure) start at as low as 0.16%.

*  Study conducted by independent research company Opinium among a nationally representative sample of 2,000 UK adults aged 18-plus between March 1^st and 3^rd 2022 using an online methodology.

Enjoy reading this blog? 

Why not try reading one of our other blogs on pension consolidation:

• Should I combine my pensions? 
• What is pension consolidation?

Or visit our pension consolidation page here. 

Disclaimer 

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

This notice cannot disclose all the risks associated with the products we make available to you. When making your own investment decisions it is important you understand that all investments can fall as well as rise in value and it is possible you may get back less than what you have paid in. You should also be satisfied that any investments you choose are suitable for you in the light of your circumstances and financial position. You should seek financial advice if you are not sure of what’s best for your situation.