consolidating pensions

Pension Consolidation: Is it an Option?  



Posted on: 17th August 2023

Are you currently running several personal pensions separately? If you have not had conversations around consolidating pensions into one easy-to-manage process – it may be worth seeking advice from independent financial advisers Cheshire before making any decisions.

Accumulating Pensions

If you have accumulated some pension pots throughout your lifetime, it is not uncommon to lose sight of them. 66% of UK workers have more than one pension in the wings, with most having upwards of four pension pots minimum.

Many people are totally unaware of how many pension pots they currently hold. Today, many people get their pensions lost in the shuffle because their working nature has changed so much compared to decades prior. The DWP estimates that an average UK worker will have seen more than 11 employers throughout their working life, with auto-enrollment over multiple workplace schemes accumulating these various pension pots.

It would be great to consolidate all of these various pension pots into one place – but is it something viable?

Pension Consolidation

Pension consolidation is simply combining two or more pensions into a single pot, and it has several worthwhile benefits.

Keeping track of your various pensions is difficult in execution as you get older, especially if you receive various pension statements each year or have a change of circumstances. Typically, changes in living venues results in lost communication on your pension pots, with only 1 in 25 people informing their pension provider of address changes when it occurs.

Currently, there is around £20 billion in unclaimed and untouched pension pots in the UK – some of which could be yours.

Understanding Performance Levels

If you own several pension pots, how sure are you concerning theiroverall performance? It can be a very complex task when you hold a larger amount of pension pots with different amounts.

Consolidating your pensions into one works to reduce the amount of paperwork and create ease in tracking progress. That becomes much more important as you touch on your retirement planning Cheshire. When you set retirement objectives, you ideally don’t want them affected and needing to reshuffle your plans to recover. Understanding where your pensions sit and perform will help to keep you on course for your retirement goals.

For some people, it may perform better to keep it as it is due to certain benefits. To be sure that it works better to consolidate your pensions, you need to consult with independent financial advisers Manchester for professional advice tailored to your circumstances.

Contact the team at Haven IFA today for pension advice Manchester that works to make life easier.