Pensions newbie - advice

atush

moneysavermummy2014 wrote: »

Ahh thanks Atush; that's a good idea, not one I'd really considered either! We have used Fidelity for various savings etc; is that the sort of thing you mean?

Yes, and I think you can find them on Cavendish online?

FatherAbraham

moneysavermummy2014 wrote: »

- I have three historical, very small pension pots from when I first stated working, each of about £1000k and each with a different provider. Is it better to have all my funds in one place as obviously growth on such small amounts is limited? Should I try and 'pool' everything together?

It's not obvious that growth on a small amount is relatively smaller than on a large amount, because it's not necessarily true. Only if there are fixed fees, rather than a percentage charge, is a smaller pot going to grow more slowly.

Reasons for transferring might include:

• reducing administration by reducing the number of providers
• reducing charges, by transferring to the cheapest

There are also potentially reasons not to transfer:

• a pension arrangement might provide valuable benefits, such as a guaranteed annuity rate, which would be lost on transfer
• retaining different types of pension arrangement may offer valuable diversification of risk

Warmest regards,
FA