Most people, during their career, accumulate a number of different pension plans. Keeping your pension savings in a number of different plans may result in lost investment opportunities and unnecessary exposure to risk.
Pension consolidation involves moving, where appropriate, a number of pension plans – potentially from many different pensions’ providers – into one single plan. It is sometimes referred to as ‘pension switching’.
Pension consolidation can be a very valuable exercise, as it can enable you to:
- Bring all your pension investments into one easy-to-manage wrapper.
- Identify any underperforming and expensive investments, with a view to switching these to more appropriate investments.
- Accurately review your pension provision to identify whether you are on track.
However, not all consolidation of pensions will be in your best interests. The potential benefits of consolidating your pensions won’t apply to everyone, and there may be drawbacks to moving your pension plans – particularly so for certain types of pension. It’s vitally important to carefully consider all aspects of your existing pensions before making a decision as to whether or not to consolidate.
If you have pension funds in excess of £150,000 and need further advice, call us on 01704 500324, or if you would like to receive a free guide, please register your details here.