Consolidating your pension plans

The reasons people transfer their pensions vary, with some looking for better fund performance and lower charges, and others having been made redundant. If you have a number of pensions from previous employers you should obtain professional advice as it may be appropriate to consolidate them, although this will depend on a number of different factors you’ll need to discuss in full.


Increased buying power

If appropriate, consolidating your pension plans would enable you to bring all your retirement savings together, which could make it easier to manage or increase your choice of investment options – particularly useful if your existing funds are underperforming.

Is transferring your pension right for you?
Pension transfers are a complex area of retirement planning and you should be sure that a transfer is right for you before you proceed.

1. Compare the charges – how do the costs of your current pension compare with those of the potential new provider?

2. Exit fees – some pensions apply an exit fee when you transfer out, so check with your current provider before you transfer.

3. Loss of benefits - check what benefits from your current pension you could lose if you transfer out of it.

4. Compare the investment options - how does the range of investments from your current pension compare to that offered by the new pension provider?