Is it better to combine pensions?

Is it better to combine pensions?

Do you have multiple pension pots? Don’t worry – this is the situation for many of a certain age. People will go from career to career, having multiple jobs over their lifetime. The result of this is the creation of a pension pot by each individual employer, which leaves you with money saved in different places. One question you might have asked yourself is – is it better to combine pensions?

Is it better to combine pensions?

If you currently have multiple pension pots and are contemplating whether these should be combined or not, this is the question you have on your mind. So, is it better to combine pensions?

The answer is an unequivocal yes. In fact, you should start looking into combining your pensions right now.

Need a little more convincing? Well, there are various benefits gained from consolidating all of your pension pots into a single large pot. Here are some of the main advantages to keep in mind:

Greater convenience

One of the biggest reasons to combine pensions is the convenience it provides. Think about it. Multiple pension pots result in you having to follow multiple different funding collections. It’s like having to visit multiple shops to get all of your groceries. Now imagine how much easier it is to simply visit a supermarket for your groceries – that’s what combining your pensions effectively does.

With your pension being in just a single location, you can easily keep track of its performance. One platform also makes it a breeze to manage your pension.

More investment options

Pensions are an investment. Yet if you simply stick with multiple pension pots created by past employers, you are effectively following their investment options. Understandably, some pensions can perform poorly in comparison to others.

By taking control and having your pension pot in a single location, you open the door to more investment options – and these can be more lucrative than those you are currently benefiting from.

Lower pension charges

Multiple pension pots result in multiple charges. While these typically won’t be too drastic, they can soon mount up when combined. When you consolidate these pots, however, you are left with only one general charge to cover. This charge will typically be lower than all of those smaller, multiple charges when added together.

Access your pension with more flexibility

The added flexibility is another benefit of combining your pensions. When you have a single pension pot, there are more options available in terms of accessing funds. Once you have passed the minimum pension age, you can withdraw your cash with greater flexibility and ease.

Budget better

Keeping track of multiple pensions is tricky. Rather than having to check each one and add up how much you will receive each month, a combined pension ensures you only have to keep track of a single funding source.

How to successfully combine your pensions

Combining your pensions will only work if it is done the right way. That is where iSIPP can help. As specialists in making pension management simple, we know a thing or two about combining pensions successfully. Furthermore, our specialist pension platform ensures you can easily track and manage your combined pension.

Our pension experts will also leave no stone unturned in finding any lost or forgotten pension pots. This means your combined pension pot is maximised in value and you don’t miss out on any lost funds.

A £20,000 minimum total transfer is required for an iSIPP account. Alternatively, a pension contribution option, starting from £250 per month, is available.

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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.


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