Pension Consolidation

If you’ve had more than one job during your working life, it’s likely that you’ve paid into more than one defined contribution pension scheme.

Consolidating your pension pots means transferring them into a single plan, and this can offer significant benefits. At My Pension Expert, our advisers can recommend portfolios that have the potential to deliver healthy growth within a risk profile you’re comfortable with, identifying the options that align with your pension objectives.

Of course, when considering switching up your pension strategy, you should always consider what the positive and negative impacts could be. So, what are the benefits?

There are a couple of key reasons why consolidation might not be right for you. So, you should consider the following:

• Do any of your existing plans have any unique benefits, such as protected tax-free cash or enhanced death benefits?

• Do any of your policies have exit penalties that could cancel out the benefits of transferring to a new provider?

• Do you have a defined benefit pension? We don’t usually recommend transferring this type of pension – it’s hard to beat!

• Are you still paying into your pension, and does your employer match your contributions? You may lose out if you switch.

On top of these questions, it’s important to remember that there’s no guarantee that your new fund will perform better than your existing one, and past performance can’t be used to predict future performance.

That being said, our advisers recommend portfolios that offer prudent fund management and market analysis, competitive fee structures, and investment diversification, all with the aim of putting you in the best position to meet your objectives. We also make sure to answer all of the above questions as part of our pension checks, so that you can be confident that you won’t miss out!