Pension Consolidation Could Be Beneficial
According to research from the Department for Work and Pensions, the average working career involves eleven different jobs*. Many of these roles could as part of the salary package include contributions to a workplace pension scheme, and with new rules regarding auto-enrolment, the number of small personal pension pots people hold could well increase. By having a few small funds, managing your pension savings could be more difficult and time-consuming.
Pension Consolidation could help you take control of your pension funds by simply bringing all these pension policies together into one manageable fund. A survey by Aegon UK consumer panel found that 21% of people with multiple funds had lost track of one or more pension fund^
Although pension consolidation may not suit everyone and every pension fund, it makes sense to think about how you could benefit including:
- Finances – Your multiple pensions may have different annual management charges some lower than others, so it could make sense to combine your pensions into a pension scheme lower fees.
- Easy to Track – It’s critical for your retirement planning to keep a close eye on your pension savings and moving them into one pension scheme could mean you don’t lose track of your money
- Performance – Having a single fund could make it easier to track its performance and identify whether other products could be more suitable for you.
- Ease – Managing one fund is much easier than multiple funds. Instead of getting statements from all your pension providers including a defined benefit pension and struggling to keep track of them, you’ll receive just one statement covering all your pension savings.
No matter how much time you’ve spent researching the different options and whether to combine your pensions is right for you, you probably still have a few questions that need answering.
If you wish to find out how Pension Works can help you with pension consolidation and to see if it is right for you, click here to go to our service page or start your journey online.
^ Research was conducted by Aegon with Aegon UK consumer panel. The total sample size was 1,004 adults. Fieldwork was undertaken in October 2016.
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