Consolidating company pensions

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The chances are you may have a number of different pensions with different employments throughout your working life.

Additionally, you may have different investments with different providers.

It's important that you know and compare the features and benefits of the plan(s) you are thinking of transferring.

It can be a complex decision to work out whether you would be better or worse off combining your pensions.

Transferring your pension might not be the right thing for you and there are a number of factors you need to consider.

Typically schemes which should be reviewed with caution include hybrid pension schemes and pension funds with gaurantees, such as a guaranteed annuity rates (GAR).

A financial adviser is well-placed to discuss the process with you and help you decide whether a pensions merger is appropriate for you.

This is especially the case if you’re thinking of using pension consolidation for final salary pensions or hybrid pensions, as these are likely to require some element of final salary pension transfer.

All this can lead to a complex retirement structure which could lead to unforeseen problems. By consolidating your existing pension benefits you are making sure you are appropriately managing your retirement fund. Consolidating your pension benefits means bringing your various pension arrangements into one overall pension plan from which all investments will be made.

It is good practice to regularly review your retirement plans, but in particular to complete a full review at age 50, to ensure you are fully aware of all pension holdings and the investment risk profile of your portfolio.

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