{"id":4085,"date":"2019-02-27T08:21:03","date_gmt":"2019-02-27T08:21:03","guid":{"rendered":"https:\/\/www.2020financial.co.uk\/?p=4085"},"modified":"2020-12-18T15:31:01","modified_gmt":"2020-12-18T15:31:01","slug":"what-to-do-with-multiple-pension-pots","status":"publish","type":"post","link":"https:\/\/www.2020financial.co.uk\/what-to-do-with-multiple-pension-pots\/","title":{"rendered":"What to do with multiple Pension Pots?"},"content":{"rendered":"\n
\"Pension<\/figure>\n\n\n\n

The average Brit will have 11 different jobs throughout their working life building up a series of smaller pension pots that often get left behind as we move from one job to the next. So what happens to them and what should we do with multiple pension pots?<\/h3>\n\n\n\n

It could be possible to consolidate multiple pension pots into one, but there may be benefits and risks of doing so. Whilst you could access a wider choice or investments you should<\/em><\/strong> check the costs of transfer and whether you have guaranteed benefits first.<\/em><\/strong><\/p>\n\n\n\n

Should I combine my pensions?<\/h2>\n\n\n\n

If you\u2019ve got lots of small pension pots then you may want to consider combining them into one, which is known as Pension Consolidation. Some of the reasons you might want to consider this are:<\/p>\n\n\n\n

  1. Convenience<\/li>
  2. Improved Flexibility<\/li>
  3. Greater Fund Choice<\/li>
  4. Ability To Lower Cost Potentially Improve Returns<\/li>
  5. Uncertainty, Take The Terminal Bonus While It Is Still Payable<\/li><\/ol>\n\n\n\n

    And some drawbacks of moving your old pensions may include:<\/p>\n\n\n\n

    1. Penalties To Transfer<\/li>
    2. Cost Of Moving<\/li>
    3. New Product May Be More Expensive<\/li>
    4. Loss Of Guaranteed Benefits (Annuity Rates, Tax-free Cash, Life Insurance) <\/li>
    5. Loss Of Loyalty Bonuses, Terminal Bonus<\/li><\/ol>\n\n\n\n

      So what are the main reasons to consolidate your old pensions?<\/h2>\n\n\n\n
      1. Convenience<\/li><\/ol>\n\n\n\n

        Quite simply, It\u2019s easier to manage your pensions if they\u2019re in one place. You could save on administration and paperwork.<\/p>\n\n\n\n

        Your pension provider should send you a statement every year with the current value of your pension and the forecast for what it will be worth at retirement. With multiple pension pots you might find yourself drowning in paperwork and unable to see the wood for the trees. If you combine your pensions you\u2019ll be able to see at a glance how much money you have saved and whether you are on track to meet your retirement goals. It\u2019s also going to be easier to see how much you\u2019re paying in any associated fees.<\/p>\n\n\n\n

        Also, when it comes to accessing your pensions it may be easier to only have to deal with one pension provider.<\/p>\n\n\n\n

        \n

        It's easier to manage your money if you know where it is. We give our customers access the latest technology to help them reach their goals faster #pensions<\/a> #retirement<\/a> https:\/\/t.co\/pmHRFuww74<\/a> pic.twitter.com\/h8qrSZTZ65<\/a><\/p>— 2020 Financial (@simonpgarber) February 26, 2019<\/a><\/blockquote>