Merge multiple work-related pensions?

collinsm01

I've moved jobs over the years, and now have about 7 or 8 separate pension pots with the various employers. My question is - is it worth paying an independent financial consultancy to consolidate all of these into one and for them to advise which one that should be - or should I do it myself? I got part-way down this road with a Consultancy last year, but then saw what they intended to charge and got cold feet and called it off. But I'm still wondering whether it matters that they're all separate, whether it's better if they're all together, and whether I am better off doing it myself. If the latter, then what is the best pension for me to move everything to?

xylophone

What kind of pensions are your existing pensions?

Are any of them defined benefit? If not DB, do you have any DC with safeguarded benefits?

http://www.thepensionsregulator.gov.uk/docs/db-dc-transfers-conversions-regulatory-guidance.pdf

If not, it would be possible for you to transfer your pensions into (for example), a SIPP.

Do you have the knowledge and confidence to manage the pension for yourself?

dunstonh

My question is - is it worth paying an independent financial consultancy to consolidate all of these into one and for them to advise which one that should be - or should I do it myself?

It is like any job in life. Do you DIY or get someone to do it for you. If you can DIY well then you can save money. If you DIY badly then it will cost you money.

But I'm still wondering whether it matters that they're all separate, whether it's better if they're all together, and whether I am better off doing it myself.

Wondering is not helping you. You need to know. So, that brings us back to whether you DIY or use an IFA (not an FA).

If the latter, then what is the best pension for me to move everything to?

There is no one best pension that fits all. It will depend on a range of things (age, amounts involved, investment options to be utilised, features, pension freedom options that will be used in future etc etc). This will be part of the research you do if you DIY.

Linton

The only problem with having multiple pensions is the hassle to keep track and manage them. If all the pensions are DC it may be easiest to merge them all into your current employer's pension. Current employer pensions often have lower charges and you may well find your current employer's pension staff very helpful. It is unlikely that an old employer would allow transfer in - there is no benefit to them.

However you should check the costs and facilities of your various pensions, you dont want to move any to something worse.