Pension Consolidation

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Should I consolidate my pensions?

Gone are the days when you left school and worked for one employer up until you retired.

Now people tend to move jobs a few times. With auto enrolment , it is easy to build up 5 or 6 pots.

Each with their own statements.

Each with their own investment choices.

It is very common to ask whether you should merge them.

There are some real benefits to consolidating, which include:

• Easier to update your address when you move house
• Easier to track of what you’ve built up
• Fewer investment funds to keep on top of

There’s a theme here which is convenience.

Whilst there are benefits to consolidating there are also very good reasons why it may not be right for you. These could include:

• If you transfer a final salary scheme you lose the guaranteed income
• You may have a protected tax-free cash (meaning you might be able to take more than 25% as a lump sum)
• You may have some form of growth guarantee
• You may have a protected retirement age
• The charges on the scheme you want to transfer to might be higher than where you’re transferring from
• The fund range might be better in the existing scheme compared to the new scheme

Pension plans can be very different. It takes a lot of time, skill and knowledge to understand them and work out the best way forward for you. If you are not happy doing this yourself, you should seek the help of a professional.

Frozen pension policy – a misnomer

You may have heard the term frozen pension policy. This is usually used for a pension you had when you worked for a previous employer.
Frozen, makes it sound like it is sitting there doing nothing.
It is unlikely to be ‘frozen’ as any invested money will still move in line with what it is invested in.

What many people do not realise is that you are in charge of your pension plan. You control the investments within it.

Maybe it’s not frozen but maybe it is in a slumber?

How we can help

We have many years’ experience of dealing with pension schemes . We will work with you, to work out what is important for you. From this we can assess how you can best achieve your aims.

Why Rootes Wealth Management?