Should you Consider Combining your Pension Pots?

By June 3, 2017Manchester
Should you combine your pension pots?

If you have two or more pension pots you may be considering whether you would benefit from combining them into one pot. Combining your pension pots may make your pension easier to manage and track performance and in some instances you could get a better deal.

Many people are likely to have built up two or more pension pots from making contributions into workplace pension schemes at jobs they have had throughout their careers. While it is possible to have several smaller pots, it could be advantageous to combine your smaller pots into one big pot.

Before making any changes, it is imperative to seek independent pension advice to ensure you are making an informed decision that benefits your pension planning strategy. If you are looking for independent pension advice in Manchester, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

Why Consider Combining your Pension Pots?

Making the most of your pensions now by combining them could have a significant impact on your retirement income and future financial security. While it may not be beneficial for everyone depending on the type of pension scheme they have, getting it right could mean a higher retirement income and the possibility of early retirement.

Making the decision to combine your pension pots is not an easy one, which is why it is advisable to seek independent pension advice prior to making any changes. Our recommended advisers in Manchester can provide pension advice to help you understand how combining your pension pots could affect your retirement income.

Combining your pension pots is achieved by transferring your pots into a single scheme, this can be a new scheme or one of your existing pots. It is important to understand any charges that may be incurred by your pension scheme providers when you transfer your pots.

There are many different options regarding defined benefit pensions and defined contributions pensions and how you can combine your pension pots, so it is advisable to seek independent pension advice to ensure you understand your options and how the will affect you.

If you have built up more than two pension pots and are considering whether combining them into one pension pot could be beneficial to you, here are a few questions you may want to consider asking your financial adviser:

How much will it cost to combine my pension pots?

  • Do my pension pots have to be of a certain value before I can combine them?
  • What are the advantages and disadvantages of combining my pension pots?
  • What are the advantages and disadvantages of keeping my pension pots separate?
  • How will combining my pension pots effect my pension plan?

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients in Manchester to provide independent pension advice. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and can provide advice to overcome changes in your circumstances.

At PensionAdvice.org we can help you find a FCA registered financial adviser for pension advice in Manchester. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

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