Over the course of a career, many people accumulate multiple pension pots from different employers. Consolidating your pensions into one could:

• Simplify management: Having a single pension pot means fewer statements, easier tracking, and less paperwork.
• Reduce fees: Some older pension schemes have high fees. Consolidating into a lower-cost option could save you money.
• Improve investment options: Modern pension schemes often offer a wider range of investment choices, giving you more control over how your money grows.
• Boost growth potential: Combining smaller pots into one larger fund can give you access to better investment opportunities and reduce cash drag (uninvested funds losing value over time).

Over the course of a career, many people accumulate multiple pension pots from different employers. Consolidating your pensions into one could:

• Simplify management: Having a single pension pot means fewer statements, easier tracking, and less paperwork.
• Reduce fees: Some older pension schemes have high fees. Consolidating into a lower-cost option could save you money.
• Improve investment options: Modern pension schemes often offer a wider range of investment choices, giving you more control over how your money grows.
• Boost growth potential: Combining smaller pots into one larger fund can give you access to better investment opportunities and reduce cash drag (uninvited funds losing value over time).

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• Final Salary Schemes: Defined benefit pensions (e.g., final salary schemes) provide guaranteed income in retirement and often come with valuable benefits that are lost if transferred.
• Exit penalties: Some pension providers charge fees for transferring out of their scheme, which could outweigh the benefits of consolidating.
• Tax implications: Transferring pensions could push your savings above the Lifetime Allowance (currently abolished but still taxable under transitional protections), resulting in significant tax charges.

Start by gathering details about your pension pots. Key information includes:

• Scheme names and providers.
• Current fund values and annual fees.
• Investment performance and options.
• Any benefits or guarantees, such as death benefits or guaranteed annuity rates.

Not all pension schemes are created equal. Compare the features, costs, and benefits of your existing pots with potential new schemes. Key factors include:

• Scheme names and providers.
• Investment performance history.
• Flexibility in accessing your funds.

Pension consolidation is a major financial decision. A financial adviser can help you:

• Assess whether consolidating is the right move.
• Identify the best schemes to transfer into.
• Avoid pitfalls, such as losing valuable benefits or triggering exit fees.