Consolidating your pensions is the act of bringing together all of your existing pots and making them one combined force.
Throughout our lives, many of us have multiple different job roles that provide us with various pension plans.
Having them scattered across different accounts with varied rates can make it harder to keep track of them.
It can also be trickier to figure out what each will provide you with when the time comes.
Therefore, here we are going to take a look at some of the reasons why you should consider consolidating all your pensions.
Simplicity
Although it may sound like it’ll be a complicated process, bringing together all your pensions is actually super simple!
For example, with Wealthify you can transfer pensions in three easy steps.
You tell them about your pensions, they organize the transfers, then they take over the management.
You don’t have to put much work in at all and it can be organized in very little time.
Easy to Keep Track When Everything is All in One Place
Once you have consolidated all your pots, it’s much easier to keep on top of how much money you have and how much it’ll be worth once you’re able to access it.
When everything is in one place and you can view how much you’re putting in and what it will amount to over time, it can make you realize if you can afford to pay less in or if you should try to increase your payments.
As well, when you can quickly and easily view your pension from one app on your smartphone, it really puts you in the driving seat. You can add in random one-off payments if you want, and always be aware of where your pension is at.
Plus, when all your money is going into one pot, you can then easily change your investment style if you want.
It’s not so straightforward for you to do so when you have four or five different pension pots to manage.
Having everything in one account really does take out a lot of the admin work when it comes to your pensions.
Plus, it ensures that you don’t forget about any of your other sources when everything is all together!
Find the Best Plans
If you weigh up all of your different options, and see where your pension streams are currently being looked after, then you can compare and go with the provider that you deem to be the best.
This could be down to the returns and costs involved, the management or even the customer service. Everything plays a part.
Free to Switch
Most providers will allow you to consolidate your pots free of charge.
Always read the small print to ensure this is the case though, as you don’t want any surprises down the line.
However, you should be aware that some providers charge exit fees, so this is something to keep in mind and check before you go through with the consolidation.
