Pension Pooling

Mom_Knows_Best

Hello Forum Followers,

I'm 56 and still working with 4 small pensions from previous employment. I'm unsure whether to combine/pool the pensions together or leave them as is. Any advice or pointers would be much appreciated.

:A

dunstonh

If it is good to consolidate them then you should. If its not good then you should not. There are too many variables and no one-size-fits-all answer to your question as it would require an analysis of each scheme you have and compare them to the alternative being considered (or others available on the marketplace).

So, that is something you or your adviser is going to need to do to get the answer you are looking for.

Mom_Knows_Best

Hi Dunston - Thanks for the feedback. Would it be advisable to obtain multiple views from different independent financial advisers. My fingers have been burnt in the past when the 'best' financial advice I received turned out to be a better commission for my adviser rather than the best investment for me! That is not intended as a blanket gripe - experience has made me extremely cautious but I know I have hesitated possibly too long in reviewing my pension possibilities. Your view would be much welcomed.

dunstonh

Would it be advisable to obtain multiple views from different independent financial advisers.

Asking a number what their charges are is important. That is about it. There are different models. but its important it is an IFA and not an FA. The main issue with IFAs it typically the cost. You get good value and you get greedy ones. Just like any area really.

y fingers have been burnt in the past when the 'best' financial advice I received turned out to be a better commission for my adviser rather than the best investment for me!

IFAs cannot be paid commission. In theory, FAs cant too but some circumvent the rules with loopholes.

MallyGirl

It depends on how comfortable you are with internet searches and spreadsheets.
I got to the point where I had 8 pensions (plus state) and my DH had another 6. I spent many hours searching on websites and in our paperwork and then entering all the info about them into a big spreadsheets so that I could work out how they were invested - both individually and as a joint portfolio. It was an eye opener.
I have now opened a SIPP and am transferring some of my small or high charges ones into that and investing in funds that aim to balance the portfolio more to where I feel it should be. An IFA could have all done this but it would probably have cost a bit and I now feel more in control of my own finances.
Next step will be to get DH a SIPP and do the same with some of his.

OldMusicGuy

It depends on the pensions - are they DC or DB? I had 6 different DC pots which I combined into one to make it easier to manage and also to improve the range of investment choices (some of the pension providers had limited fund choices). I did it all myself, it was easy but then my pensions (apart from one) were all straightforward DC schemes with no complexities.

MallyGirl

yes mine were all DC too.
I am still recovering from discovering that my DH has £210k, a third of his current portfolio, in a DC pension invested entirely in equities. Was probably a reasonable choice in his 20s when he took it out - not quite so appropriate now he is 50 and looking to retire within 10 years.
He had no idea.

IanSt

MallyGirl wrote: »

yes mine were all DC too.
I am still recovering from discovering that my DH has £210k, a third of his current portfolio, in a DC pension invested entirely in equities. Was probably a reasonable choice in his 20s when he took it out - not quite so appropriate now he is 50 and looking to retire within 10 years.
He had no idea.

What's in the other two thirds of his portfolio? You definitely need to be happy with your portfolios but having a big chunk in equities is not necessarily a bad idea - there is a good possibility that at least one of you could be living to at least your nineties and so may need to have access to the inflation proofing that equities have usually brought.

MallyGirl

The other 2/3rd is 58% equities with some bonds/property/cash/other. Overall he is 75% equity whereas I would be more comfortable with equity around the 60% mark.
My own portfolio is in the high 60s% equities so I am migrating that gently down (now that I know that)

IanSt

I too am in my fifties but my own particular preference is for a higher equity percentage, however I realise that I am very much in the minority and many people do prefer/advise a lower figure like the 60% you're targeting so definitely go for that if that's what you're happy/comfortable with.