If you've changed jobs multiple times over your career, chances are you've accumulated several workplace pensions along the way. While this is completely normal, managing multiple pensions can be confusing.
You may be wondering what your options are and how to ensure you're getting the most from your retirement savings.
Here’s what you need to know.
1. Locate Your Pension Pots
The first step is to track down all the pensions you’ve accumulated. If you're unsure where to start:
· Check old payslips and employment contracts – These may contain pension provider details.
· Use the Government’s Pension Tracing Service – This free service can help you find lost pensions if you’ve changed jobs.
· Contact previous employers – They should be able to direct you to the right pension scheme administrator.
2. Review Your Pension Plans
Once you've located your pensions, it's time to assess them. Look at:
· Fees and Charges – Some older pensions may have high management fees that eat into your returns.
· Investment Performance – How well have your pension funds been performing?
· Guaranteed Benefits – Some pensions come with valuable guarantees, such as a set annuity rate, that you wouldn’t want to lose.
3. Consider Pension Consolidation
Combining your pensions into one pot can make managing them easier and potentially reduce fees. However, consolidation isn't always the right move for everyone. Before making a decision:
· Check for exit fees – Some older pensions have high transfer charges.
· Ensure you’re not losing valuable benefits – Defined benefit pensions or those with special guarantees might be worth keeping separate.
· Compare costs and investment options – Make sure the pension you’re transferring into offers competitive fees and good investment choices.
4. Keep an Eye on Your Retirement Goals
Now that you have a clearer picture of your pensions, ensure they align with your retirement plans. Ask yourself:
· When do I plan to retire?
· Do I have enough savings to maintain my desired lifestyle?
· Should I contribute more to a pension to boost my future income?
5. Seek Professional Advice
Managing multiple pensions can be complex, and making the wrong decision could cost you in the long run. A regulated financial adviser can help you:
· Assess your existing pensions.
· Identify the best course of action based on your individual circumstances.
· Maximise tax efficiency and investment performance, but within your risk tolerances
· Help create a plan and understand if you’re on track to achieving your retirement goals
Speak to us at Brancaster House
Having multiple pensions doesn’t have to be overwhelming. By locating, reviewing, and possibly consolidating your pension pots, you can take control of your retirement savings.
If you're unsure what to do next, seeking professional financial advice can provide peace of mind and help you make informed choices for your future.
Want to speak to us? Book a free financial health check with one of our expert advisers here: https://www.brancasterhouse.co.uk/healthcheck
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