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.

*https://www.gov.uk/government/uploads/attachment_data/file/220405/small-pension-pots-consolidation.pdf

^ 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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If your pension funds are valued over £30,000, and you’re looking at your pension options, fill out the call me back form and one of our pension experts will contact you. If you have your national insurance number and pension provider name handy, start your pension check online by clicking here.

How much could you be losing?

Simply select your pension pot size and age below using the sliders to calculate how much your pension could grow by transferring to a scheme with lower fees.

Figures based on comparisons between pension policies charging 0.5%, 1% or 2% annual provider charges. Pension fund value assumed 5% annual growth. This calculator is for illustration purposes only. Please note investments can go down as well as up.

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The graph is best viewed horizontally on mobile devices.

*Defined Contribution Pensions*	These are ‘Pot of Money’ pensions where the benefits provided take into account the value of the fund at retirement. They can be personal pensions or Occupational Pensions. There are no guarantees as to what pension will be provided. This will be a reflection of contributions made and investment growth.
*Defined Benefit Pensions*	These offer the promise of a guaranteed pension at retirement which reflects the length of service with an employer. It will be based on either the Final Salary or Average Career Salary of the employee. Providing the company is still in existence, there is no investment risk for the pension receiver. This type of pension is becoming less frequent.
*Private Pensions*	This is a generic term for pensions that are not workplace schemes.
*Group Personal Pensions*	Employer-sponsored schemes – each member has a personal pension plan, and their contract is with the pension provider. The employer’s role solely is to select the scheme provider, decide if there should be any restrictions on fund choices and take contributions from the employee’s pay and forward them with employer contributions to the pension provider.
*Self-Employed Pensions*	A private pension arrangement or personal pension is taken out by a sole-trader or self-employed worker.
*SERPS Pensions*	State Earnings Related Pension (formerly Graduated Pension and subsequently State 2nd Pension or S2P) was an additional element of State Pension for employees. The amount of pension was linked to the employee’s salary. SERPS was abolished in 2016 when the flat rate State Pension was introduced.
*Personal Pensions*	Private pensions are contracts between the pension member and an insurance company or another pension provider.
*SIPP Pensions*	These are personal pensions where the member has a much wider choice of investments, including commercial property and single company shares.
*Stakeholder Pensions*	Personal Pensions with a set of rules that impose amongst other things a maximum annual management charge (AMC), low minimum contribution levels (£20 per month) and an appropriate Default fund.
*FSAVC Pensions*	Private pension linked to an employer’s Defined Benefit Scheme but separate from the Scheme’s internal Additional Voluntary Contribution (AVC) arrangement – largely defunct since the rules were eased several years ago, allowing people to contribute to both personal and employment schemes as they wish.
*Money Purchase Pensions*	This is another name for Defined Contribution Pensions.

Pension Consolidation Could Be Beneficial

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Pension Consolidation Could Be Beneficial

Free Pension Check Form

Get started today!

How much could you be losing?

Your Results:

We work with the whole of the market including the biggest pension providers across the UK

About us

Need help?

We work with the whole of the market including the biggest
pension providers across the UK