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According to Brewin Dolphin, the wealth manager, owning multiple pensions is not only an administrative burden, but it could also be costing you financially \u2013 whether that\u2019s through excessive fees or poor investment performance.<\/p>\n\n\n\n
Lee Clark, financial planner at Brewin Dolphin, said: \u201cIf you\u2019ve worked for several employers throughout your career, you might have accumulated multiple pensions across a range of different providers. You may also have personal pensions that you\u2019ve set up yourself, especially if you\u2019ve been self-employed or a contractor.<\/p>\n\n\n\n
\u201cTransferring your pensions into one pot could help you keep track of your finances more easily, reduce charges, and boost how much money you have at retirement. But while there are advantages to pension consolidation, there are potential drawbacks and it\u2019s important to seek advice on whether it is right for you. There are pros and cons that need to be considered.\u201d<\/p>\n\n\n\n
Pension consolidation: the pros<\/strong><\/p>\n\n\n\n Lee says that keeping on top of several different pensions can be difficult and time-consuming. \u201cIf you have, say, ten pensions with ten providers, then that\u2019s ten lots of investment performance to monitor, ten different charges to keep an eye on, and ten statements to read through each year. This is an onerous task that few people have the time or know-how to complete accurately. For some people, therefore, transferring pensions to one provider may simply be about making their \u2018life admin\u2019 a bit more straightforward,\u201d he said.<\/p>\n\n\n\n He also points out the cost of paying the administration fees for each of your pensions, which may not be cost-effective. This is especially the case for those providers operating outdated and uncompetitive charging structures. \u201cFees eat into your investment returns and may ultimately reduce how much money you have at retirement. By combining your pensions, you might be able to save on charges,\u201d he adds.<\/p>\n\n\n\n Fees aren\u2019t everything, however, as you also need to consider the performance of each pension fund. It may be that some of your pensions have poor investment performance, and that transferring to a different scheme offers better investment growth potential.<\/p>\n\n\n\n Comparing charges and investment performance isn\u2019t easy to do on your own \u2013 if you\u2019re unsure, speak to an adviser.<\/p>\n\n\n\n Pension consolidation: the cons<\/strong><\/p>\n\n\n\n However, Lee says that consolidating your pensions could prove financially detrimental if it means giving up valuable benefits and guarantees. Ones to watch out for include:<\/p>\n\n\n\n These benefits and guarantees aren\u2019t easy to spot, so it\u2019s always worth asking an adviser whether any of them apply to you. Otherwise, there\u2019s a risk you\u2019ll throw away a valuable perk and end up with less money in retirement. An adviser will also check whether any of your pensions charge large exit fees and, if so, advise whether it makes sense to stay put.<\/p>\n\n\n\n Beware pension transfer scams<\/strong><\/p>\n\n\n\n Lee warns that if you decide pension consolidation is right for you, then it\u2019s really important to be wary of pension transfer scams. He says: \u201cUnfortunately, even the most financially savvy people can fall victim to scams, potentially losing their life savings. You should always reject unsolicited calls, emails and text messages. Before transferring your pension, make sure the firm is regulated by the Financial Conduct Authority and is authorised to give pension advice.\u201d<\/p>\n\n\n\n Tracing lost pensions<\/strong><\/p>\n\n\n\n You might have pensions from earlier on in your life that you\u2019ve lost track of, especially if you\u2019ve changed addresses. They\u2019re not always easy to find, as many pension providers have merged and changed their names over the years. One place to start is the government\u2019s free Pensions Tracing Service. You type in the name of your former employer or pension provider, and it gives the contact details you need to request information on a lost pension.<\/p>\n\n\n\n Next steps<\/strong><\/p>\n\n\n\n Lee says: \u201cConsolidating your pensions isn\u2019t a decision to be taken lightly. The money you\u2019ve built up in pension funds over the years could be substantial, and a seemingly simple decision could turn out to be a mistake and harm your future financial security. On the flipside, making the right decision could mean a bigger pension pot at retirement, and a more comfortable future for you and your family. An adviser can assess your options and advise on the right course of action, so you can feel confident you\u2019re on track for a secure financial future.\u201d<\/p>\n\n\n\n <\/p>\n\n\n\n Disclaimers:<\/u><\/p>\n\n\n\n PRESS INFORMATION<\/strong><\/p>\n\n\n\n For further information, please contact:<\/p>\n\n\n\n Richard Janesrichard.janes@brewin.co.uk<\/a>\u202f\/ Tel. +44 (0) 20 3201 3343<\/p>\n\n\n\n Anita Turland: anita.turland@brewin.co.uk<\/a> \/ Tel: (0) 20 3201 4263<\/p>\n\n\n\n Si\u00e2n Robertson: Sian.Robertson@brewin.co.uk<\/a> \/ Tel: (0) 20 3201 3026<\/p>\n\n\n\n Payal Nair payal.nair@brewin.co.uk<\/a> \/ Tel: +44 (0) 20 3201 3342<\/p>\n\n\n\n NOTES TO EDITORS <\/strong><\/p>\n\n\n\n About Brewin Dolphin<\/strong><\/p>\n\n\n\n Brewin Dolphin is a UK FTSE 250 provider of discretionary wealth management. With \u00a356.0* billion in total funds, it offers award-winning personalised wealth management services that meet the varied needs of our clients including individuals, charities and corporates.<\/p>\n\n\n\n We give clients security and wellbeing by helping them to protect and grow their wealth, in order to enrich their lives by achieving their goals and aspirations. Our services range from bespoke, discretionary investment management to retirement planning and tax-efficient investing. Our focus on discretionary investment management has led to significant growth in client funds and we now manage \u00a348.7* billion on a discretionary basis.<\/p>\n\n\n\n Our intermediary business manages \u00a317.6* billion of assets for over 1,700 advice firms either on a discretionary basis or via our Managed Portfolio Service<\/a>, the MI Brewin Dolphin Voyager<\/a> fund range and Sustainable MPS<\/a>.<\/p>\n\n\n\n In line with the premium we place on personal relationships, we\u2019ve built a network of 34 offices across the UK, Jersey and Republic of Ireland, staffed by qualified investment managers and financial planners. We are committed to the most exacting standards of client service, with long-term thinking and absolute focus on our clients’ needs at the core.<\/p>\n\n\n\n\n
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