Download our latest FREE Personal Finance Magazines and Financial Guides , found in our Digital Library.
Long-Forgotten Pension Plans: Managing your pension savings effectively and efficiently from a single pot.
If you’ve worked for two or three different employers, it’s possible you could have a workplace pension from each of them. You might also have set up a personal pension, so they can add up quickly. So how do you manage them properly? It’s time to consolidate…
Pension consolidation lets you simplify your pension arrangements and makes it easier to manage your pension savings effectively and efficiently from a single pot. There is a danger that long- forgotten plans could end up in expensive, poorly performing funds, and the paperwork alone can be enough to put you off becoming more proactive.
EASY-TO-MANAGE
So, is transferring or consolidating everything into one easy-to-manage pension the way to go? There are advantages to switching your pensions, but there are also pitfalls. The best course of action will depend on what kinds of pension you have and how long you have until retirement.
Having lots of different pensions could mean paying lots of different charges. It also means you’ve got to think about where you’ve invested the savings in each of your different pensions to make sure you’re keeping an eye on performance. And to get valuations, re-arrange your investments or alter your contribution levels, you’ll have to deal with numerous pension providers.
THE PROS AND CONS
Pensions are important, so it’s crucial that you take time to understand exactly what you’ve got and exactly what you’d be giving up when you transfer out of an existing pension.
Before you transfer any pots, you need to be sure that you’re not giving up any protected benefits like tax-free cash or low pension age. You should also consider any features your plan has, like guarantees or life assurance benefits.
Remember that what you get back depends on several things, for example, how your investments perform and how they’re taxed, and you may get back less than you invested.
If you are considering consolidating your pension accounts, this is a very specialist area, and you should obtain professional financial advice. There are a number of issues to consider before you decide to consolidate.
GETTING IT RIGHT COULD MEAN A HIGHER INCOME
Making the most of your pensions now will have a significant impact on your happiness in retirement; getting it right could mean a higher income, or even an earlier retirement date. If you would like to review your current options, please contact us.
To review your situation, please contact us – we look forward to hearing from you.
Who are Vizion Wealth?
Our approach to financial planning is simple, our clients are our number one priority and we ensure all our advice, strategies and services are tailored to the specific individual to best meet their longer term financial goals and aspirations. We understand that everyone is unique. We understand that wealth means different things to different people and each client will require a different strategy to build wealth, use and enjoy it during their lifetimes and to protect it for family and loved ones in the future.
All of us at Vizion Wealth are committed to our client’s financial success and would like to have an opportunity to review your individual wealth goals. To find out more, get in touch with us – we very much look forward to hearing from you.
DISCLAIMER:
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
PENSIONS ARE NOT NORMALLY ACCESSIBLE UNTIL AGE 55. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. THE TAX IMPLICATIONS OF PENSION WITHDRAWALS WILL BE BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION AND REGULATION, WHICH ARE SUBJECT TO CHANGE IN THE FUTURE.
