Consolidate your pensions now to gain more control and flexibility of your future retirement funds
Pension consolidation can provide many benefits and make it much easier for you to manage with better clarity of your pension pot. It can also allow for more effective management of investment strategies and the potential of tax advantages.
- Easier to manage – clearer view of your retirement finances
- Lower admin costs compared to multiple pension accounts
- Increase investment choices and opportunities
- More flexibility at retirement than some old pensions offer
- Enables more effective management and diversification opportunities
Arrange a review of your pensions to see how it could benefit you and what your options are.
We can advise on your Pension Consolidation options and tailor your investments to your risk tolerance and financial goals so you can be confident your pension is working hard for you. And with our secure, online pension dashboard you have a simple way to view your pension account at any time.
What is pension consolidation?
Pension consolidation refers to the process of combining multiple pension plans or accounts into a single, unified pension plan. This is typically done to simplify retirement savings and make it easier to manage, track, and access funds during retirement.
Why should I consolidate my pensions?
Throughout our lifetimes most of us change jobs leaving multiple pensions in different pots to manage, making it harder to keep track of your retirement savings.
The consolidation of pensions can offer several benefits, depending on your financial situation, goals and current pension types.
Gain a clearer view of your retirement finances
Transferring your pensions into one pot makes it easier to keep track of your investment, allowing clear visibility of your financial future.
Less admin – easier to manage
Having multiple pensions can be complex and time-consuming to manage. Being able to combine pensions into a single account will help you manage your money more effectively.
Flexibility at retirement
Some older pension providers have more limited options for taking an income from your pension and so by consolidating you can ensure all your funds benefit in the same way.
Increase your investment choices
Many pension schemes offer a limited range of investments. By combining them you will have more choice on the type of investment and risk level that you are comfortable with.
Reduce your pension charges
By transferring your pension you may be able to lower your pension charges. Our advisers will review the options available to you and seek opportunities to reduce your investment fees by having just one set of fees to pay.
For expert advice on how best to consolidate your pensions, contact us today.
When to think twice about pension consolidation
Should you wish to merge pensions, careful consideration of your circumstances must be taken into account as pension consolidation isn’t suitable for everyone.
There are some circumstances when it may not be beneficial to transfer your pensions, such as:
You have a final salary pension
Final salary pensions provide a guaranteed income for life which tends to rise with inflation. These valuable benefits could be lost if you consolidate your pension.
You have valuable guarantees
These would include guaranteed annuity rates, protected tax-free cash or guaranteed minimum pensions which are typically lost if you consolidate.
Your pension receives employer-matched contributions
It’s likely both you and your employer both pay into your workplace pension. You may be able to combine other pensions, but you should check with your workplace to see if they will allow you to transfer other pensions.
Your pension charges an exit fee
Some pensions will charge you an exit fee if you decide to transfer. You should compare the exit fee payable with the annual cost saving to determine if this makes sense.
If you are unsure on the finer details our expert advisers can review your pension pots to ensure suitability for pension consolidation so you have the peace of mind you’ve made the right choice.
How can AMFA help?
With a keen knowledge on pension benefits and investment expertise, our independent advisers can evaluate whether there is indeed an opportunity elsewhere. We will review and consider investment range and returns, drawdown flexibility and compare investment costs on your behalf prior to our recommendation.
You can be assured that we have fully considered your risk and retirement opportunities to ensure you are making the best investment for yours and your loved one’s future.
Pension investments will go up and down. Investments aren’t guaranteed, so you may get back less than you put in and your capital may be at risk.
EXPERT PENSION ADVICE
At AMFA we are dedicated to helping your reach your goals in retirement. Our independent advisers can help you work out the most efficient way to reach those goals and advise how much to put away in your pension each month to keep on track.
Call 02380 420 606 or contact us to speak to an AMFA adviser today to see how our pension consolidation service could work for you.