It’s incredibly easy to lose or forget about an old pension plan. You might have started a plan but have since changed jobs, moved house or simply moved on with life, so when you come to retire, that pension you started in your twenties could be the last thing on your mind. Fortunately, it’s just as easy to find these old plans and take back the control of all of your pension savings.
Published on 01 Aug 20174 minute read
You might be wondering if it is worth trying to find an old pension scheme. If you haven’t reviewed a plan for a number of years, it’s unlikely you’ll know how well (or badly) your pension investments have performed – and this could make a huge impact on your retirement plans.
If you have a number of small pensions, while they may not seem like they are worth much on their own, their combined value could make a big difference to your retirement.
There is an estimated £400 million in unclaimed pensions in the UK*. It’s worth finding out how much of this is yours.
The easiest way to find your lost or forgotten pensions is by using the Government’s free Pension Tracing Service. You’ll be shown the contact details for your relevant pension providers and can speak to them directly to find out more. You can log onto the online service or call 0345 600 2537 to get started.
Now that you’ve been reunited with your old plans, it’s important to make the most of them. Consolidating your pensions gives you more control and makes it easy to check that you’re on track financially to achieving your retirement plans. You can also be sure that you will never lose your plans again!
It is quick and simple to make changes to your investments if they’re held with one provider. Buying, selling and switching your investments could take just a few minutes.
With all your investments in one place you’ll be able to see how much you have saved at a glance, rather than comparing several statements.
You could pay less in fees if you invest with fewer providers. And with less money disappearing in fees, there will be more available to invest.
You’ll only have to deal with paperwork from one provider – potentially saving you a lot of time and reducing stress.
*According to the Department for Work and Pensions
**Before you consider transferring a pension, it is important to ask yourself: Will I lose any valuable benefits or features from my existing pension plan? Will I incur any penalties on my existing pension if I transfer? Is it an occupational final salary pension scheme? (in which case it is very unlikely to be advisable to transfer) Have I considered the charges on my current plan? (a new arrangement may be more expensive – especially if you have a stakeholder pension). Exit fees may apply if you leave Bestinvest.