Is it worth consolidating pensions?

Have you had several jobs over the years? In that case, it is likely you have built up several pension pots. Many have followed the same path. However, there is one aspect of this you want to avoid: forgotten or lost pension pots. With so many pots spread around, it is easy for some of them to go missing. This can happen due to something as simple as moving house and not updating a pension provider about your new address.

Due to this, you might be wondering if it is worth the effort of consolidating your pensions. This guide will explore the process, seeing how it can be done and if you should do it with your pension savings.

Consolidating pensions: is it worth it?

So, is it worth consolidating pensions? The short answer is yes. It is absolutely worth going through the effort of consolidating your pensions.

Now there isn’t only one reason why this is the case. There are numerous benefits gained from gathering up all of your pension pots, transferring them, and combining them all into a single pot. Let’s highlight some of the main advantages:

• Everything all in one place: Instead of looking at your pensions all across different locations, consolidating means your savings are conveniently kept in a single place. This makes it easy to manage and keep up-to-date on your pension’s overall performance. Bonus: there is also less paperwork to worry about.
• Greater number of investment choices: With a range of pension pots, your funds can be invested in different ways – and some of these can be less effective than others. With a combined pension pot, there are more investment options available to potentially improve your returns.
• Added flexibility to access pensions: Once you have consolidated your pension pots, you are given added flexibility when it comes to accessing your funds. There’s greater freedom in accessing your money when in retirement, whether you want to withdraw a lump sum or all of your pension in one go.
• Reduce pension charges: When you go with a single pension pot, it’s possible you will end up paying fewer charges. With multiple pension pots, it is likely you will be paying different charges on each of these. Doing this can be more expensive than simply paying applicable charges on a single, larger pot.
• Easier to budget: With multiple pots, you will receive numerous small pension payments each month. This can make budgeting a little tricky. Consolidating means you receive one single payment each month, and you know exactly how much you’re getting.

How to consolidate your pensions the right way

Yes, there are plenty of benefits up for grabs if you decide to consolidate your pensions. At least, that is the case if you complete the process the right way. Go down the wrong path, and it could be more time-consuming and less effective than you envisaged.

One way to get it right is to work with iSIPP. Now, it’s true that you would expect us to say that. However, we are experts in making pensions simple. Our platform is built to ensure you can monitor and manage your pension all in one place. Most importantly, in this case, it is also the ideal place to consolidate your pension pots.

With our expertise, we can go out there and gather all of your pension pots efficiently and ensure nothing goes unclaimed. Even if you have forgotten about a pot or lost employer details, we can still uncover these pensions for you!

An iSIPP account can be created with a minimum £20,000 total transfer. Alternatively, you can set up a monthly pension payment of at least £250.

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What is pension consolidation?

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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.