Posted on: 9th July 2019
Many of us switch jobs throughout our career. This means we will likely collect a fewalong the way. When you have a few pensions from different employers, it helps to combine them into one. We have discussed how to combine them in the past, but there are a few other things to consider when combining your pensions.
Combining your pensions: check what you have first
Before you do anything, you should always check what you already have. You should ask your providers to give you up to date information on how eachworks as they can differ from one another. You must also learn each pension’s benefits and guarantees so that you don’t lose anything that is worth keeping.
Make it simple
If you have multiple statements from different pension providers, you could simplify this. Having all your pensions in one place means you have far less paperwork and fewer people to deal with. To make things even easier, you can manage your money online with a single login and password.
Get to know your savings
Whatever your plans for the future, you will want to know that you have the best savings for the life you want to live. To help yourself along the way, make yourself aware of what you already have and how much more you would like to save.
Know what you’re paying
Every pension comes with its own set of charges. When it comes to deciding whether you should put them all together, you need to calculate what you are paying. You may find that paying a single set of fees may be cheaper than paying for a few small pots.
See how your investments are doing
Having your life savings in one place could make seeing the performance of your investments a lot easier. Don’t forget, the value of your fund can go down as well as up and you may receive less than you originally paid in. This is why it’s important to keep track.
Find what you’ve mislaid
It’s normal for people to lose track of their old pensions, especially if they have had quite a few jobs. You can learn more about how to track lost pensions in this guide. It looks at the best ways to find it with minimum efforts.
Taking care of loved ones
It’s something many people don’t like to discuss, but you need to think about the loved ones you will leave behind should the worst happen. The good news is that pensions make it easy for you to pass your money on to those you love. In some cases, it can be tax-free. Inheritance tax isn’t normally due on your pension savings. What’s more, having your pensions in one place can make it easier for your provider to know who you want to benefit.
Don’t forget to nominate the people you want to benefit from your life savings. This is something your will usually won’t cover. If you’re unsure, your provider can help.