<\/p>\n
Pension consolidation\u00a0lets you simplify your pension arrangements and makes it easier to manage your pension savings effectively and efficiently from a single pot.\u00a0There 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.<\/p>\n
So, is transferring or consolidating everything into one easy-to-manage pension the way to go? There are advantages to\u00a0switching your pensions,\u00a0but 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.<\/p>\n
Having lots of different pensions could mean paying lots of different charges. It also means you\u2019ve got to think about where you\u2019ve invested the savings in each of your different pensions to make sure you\u2019re keeping an eye on performance. And to get valuations, re-arrange your investments or alter your contribution levels, you\u2019ll have to deal with numerous pension providers.<\/p>\n
Pensions are important, so it\u2019s crucial that you take time to understand exactly what you\u2019ve got and exactly what you\u2019d be giving up when you transfer out of an existing pension.<\/p>\n
Before you transfer any pots, you need to be sure that you\u2019re 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.<\/p>\n
Remember that what you get back depends on several things, for example, how your investments perform and how they\u2019re taxed, and you may get back less than you invested.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
Managing your pension savings effectively and efficiently from a single pot If you\u2019ve worked for two or three different employers, it\u2019s 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.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/posts\/2108"}],"collection":[{"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/comments?post=2108"}],"version-history":[{"count":0,"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/posts\/2108\/revisions"}],"wp:attachment":[{"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/media?parent=2108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/categories?post=2108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teessidefinancial.com\/news\/wp-json\/wp\/v2\/tags?post=2108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}