pension pots

Can I Combine Multiple Pension Pots into Just One?



Posted on: 30th November 2022

It is not uncommon these days for people to have multiple pension pots caused by numerous job swaps throughout a career. Each job will have had its pension pot in play, and keeping tabs on all of them as the years move on will no doubt be met with a challenge.

If you are looking to combine these pension pots, independent financial advisers Cheshire can help you get things organised. Here are some areas to consider when combing these pots together.

It’s Easier to Manage

If you keep all of those pension pots in just one fund, naturally it creates ease in keeping tabs on it – having only one place to focus on. This takes away the overwhelming nature of the multiple-pot problem.

By combining the pension pots into one structured plan, everything is put in place and your retirement funds become easier as a result. This allows you to estimate your income expected from your pension and keep a performance focus on your investments. This also allows you to save money by transferring from higher-cost schemes to lower-cost ones.

Checking on fees being paid out to different pension providers can be very difficult and time-consuming, which makes having just one a much simpler and time-saving exercise in keeping track of your fees.

Greater Choice on Investments

Combining pension pots into one can give you a greater choice of investments if you are not averse to risk. You could find ways to boost your retirement savings with a better return on your investments.

Combing pension pots with just one opens up great opportunities as long as you have the right financial adviser there to help you with the market volatility. Informed decisions can make all of the differences when it comes to combing all of your pension pots, which is why you need an expert on pension advice Manchester when planning this stage.

Risks You Need Information On

Although there are benefits to combining your pension pots, there are always risks around it that you need guidance on. If you are in a defined pension scheme, transferring out of it requires careful consideration as it is a safety blanket that you may push away to explore riskier avenues.

The scheme’s guaranteed retirement income is a safe way to invest without much risk. Plus your existing pension schemes may offer guaranteed annuity rates, which is why you would need to know the outcome of transferring out and potentially affecting a higher rate of annuity for your pension than the market is offering. There may also be extra charges when transferring out which you will want to avoid.

If you want to know the best way of transferring your pension pots into one with minimal risk, contact the team at Haven IFA today.