Consolidating old pensions into one
Most people change jobs several times during their working careers, and it is not uncommon to pay into a number of different pension schemes over the years. This can make it difficult to keep track of your retirement savings, but a simple solution is to combine old pensions in a SIPP. The process is quick and straightforward, and after consolidating it will be easy to see how well all of your pension investments are performing. This can be vital when it comes to achieving the lifestyle you want in retirement.
Why should I combine my pensions in a SIPP?
There are many benefits to consolidating your old pensions in a SIPP:
- A clear view of your existing pension investments and how they are performing
- Access to the same wide range of investments that you may already have in an ISA
- Flexibility to switch in and out of investments depending on their performance
- If you choose the right low-cost SIPP you can reduce the fees that eat into your returns over the long-term
- Less paperwork and easier administration
What to consider before consolidating your pensions
It may not always be in your best interests to combine your pensions in one. If you are near retirement or don’t need the flexibility of a SIPP, it may not be worth transferring at all. Before consolidating old pensions, you should ask yourself:
- Will I be charged or penalised by my existing provider for transferring?
- Will I lose any valuable features or benefits if I transfer?
- Have I considered my current pension charges, and could consolidating be more expensive?
- Am I part of an occupational final salary pension scheme? (In which case I would most likely be better off not switching)
Watch our video
In this video Bestinvest’s Sally Merritt looks at why you should regularly review your pensions and the benefits of doing so.
The award-winning Best SIPP
Bestinvest was voted Best Direct SIPP Provider by Your Money readers in 2015 and Best Low-cost SIPP Provider by readers of the Financial Times and Investors Chronicle in 2013 and 2014. Our Best SIPP gives you access to more than 2,500 funds and the flexibility to move and manage your investments as you see fit. Plus, when you combine your pensions in the Best SIPP our low fees mean more of your money actually goes towards your future income. Exit and drawdown fees apply.
Find out more
Finding a lost pension
If you have lost a pension along the way, the Government’s free Pension Tracing Service could help. Visit www.gov.uk/find-lost-pension or call 0845 6002 537 today for more details.
SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Self-directed investors should regularly review their SIPP portfolio, or seek professional advice, to ensure that the underlying investments remain in line with their pension objectives. Prevailing tax rates and the availability of tax reliefs are dependent on your individual circumstances and are subject to change. Please note the term Best is a brand name of the Bestinvest SIPP.