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Ever thought about consolidating your pensions?

If you have multiple pensions, you might want to think about consolidating them all into one or two plans.

People are changing jobs more often and it’s not uncommon for them to have built up a collection of employer sponsored and personal pensions. But findings published in September 2007 by a government national survey show that an alarming number of people aren’t keeping track of them and could be losing out on pension entitlements worth thousands of pounds which could make a substantial difference to their retirement income.

The survey found that one in five UK adults change jobs five times or more by the time they are 34 years old and more than half of UK adults have no idea how much money they’ve built up in pension schemes. If you have multiple pensions, you might want to think about consolidating them all into one or two plans.

This might give you more control over your money and give you better investment choice, which can be important as a fund grows bigger. It can also make it easier to keep an eye on your money & to switch investments if you wish. There are many factors to consider and you need to be sure the benefits outweigh the costs. For instance, you may lose valuable benefits such as guaranteed protected tax free cash, protected early retirement ages, or any guaranteed annuity rate, as well as taking into account any charges that might be made.

Very few people spend enough time in thinking about saving for their retirement, but absolutely everyone will need money to live on when they retire. People are living a lot longer these days and you could spend a third of your life in retirement - that’s a long time to have to pay normal household bills, let alone pay for all the things you’ve always dreamed of doing.

Spare cash is hard to come by at this difficult time, and that is where consolidating your pension plans could help you plan for the income you need once you retire. We are here to help you make a balanced & informed decision, and can provide all the figures for you to decide on the right course of action.

Why not ask us for a pensions review, so you can see whether your current arrangements match your needs?

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

This article was taken from Seneca Reid's Spring 2009 newsletter.

Seneca Reid is a trade name of Andrew Charles Reid Smith who is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Services Authority.

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