pension consolidation

Rob.b_2

Hi I am approaching 50 so naturally think about pensions. I have a current workplace pension that I will leave alone and 5 other schemes that I have not paid into for several years, none are final salary. The largest of these is my contracted out of SERPS fund worth c£50k and the others make the total up to around £90k. The plan is to retire between 55 and 60 and leave the UK, Brexit allowing, and cash these in. About 8 years ago a company approached me about consolidation and after months told me it was not worth it but never told me why? I have all my statements but it seems like lots of gibberish, what should I be looking for? How much is a IFA to look at this? Are there any trustworthy companies that will easily, and transparently, consolidate my pension for me?
thanks
Rob

campbell19925

Wow - so many questions in one!

To be able to plan for retirement you first need to UNDERSTAND exactly what you have and what it offers you - my guess is that at the time you had a review your pensions were suitable and appropriate to your situation. However, that seems unlikely that they are were suitable so it is best to get a review done.

I can almost guarantee your SERPS pension is performing poorly and doesnt have FAD available.

My advice is to contact pensionwise - they will put you in contact with an IFA who would explain any fees upfront.

For advice and consolidation you can expect to pay anything between 1-3% and an ongoing optional charge of 0.5-1%.

MallyGirl

you m,ight struggle to find an IFA interested with a total of £90k.

I decided to take control at a similar age. I looked at the documentation about where each pension was invested and how it was performing, along with the fees being charged.
In my case none was that great and I am a big fan of simplifying things where possible. I decided to open a SIPP and transfer them all in then choose my own funds. I did a fair bit of reading before doing this - there are loads of resources to help you, both online and books.

dunstonh

The plan is to retire between 55 and 60 and leave the UK, Brexit allowing, and cash these in.

That will be heavy in tax. Unless Portugal is your destination.

About 8 years ago a company approached me about consolidation and after months told me it was not worth it but never told me why?

Pension switches have to be justified. You cant do it just for the sake of consolidation (an adviser cant anyway). So, it no justification existed, they should have left them alone. Things like guaranteed annuity rates, guaranteed minimum fund values, GMP etc can be common reasons why plans are best left alone.

what should I be looking for?

An analysis of costs, features and benefits compared with modern plans.

How much is a IFA to look at this?

Too many business models out there ranging from very good value for money to damned expensive. Something under £2000 should be target.

Are there any trustworthy companies that will easily, and transparently, consolidate my pension for me?

Yes. Most IFAs can do it with their eyes closed. Its routine for them if you dont feel ready to DIY.

you m,ight struggle to find an IFA interested with a total of £90k.

The boutique firms probably won't be interested but a general practitioner IFA should have no issue.

Dox

campbell19925 wrote: »

My advice is to contact pensionwise - they will put you in contact with an IFA who would explain any fees upfront.

Pension Wise can't 'put you in contact' (too much danger of being accused of 'recommending' certain advisers in preference to others) but useful advice at their page on seeing an IFA: https://www.pensionwise.gov.uk/en/financial-advice

xylophone

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser

Had you explored the possibility of transferring your old pensions into your workplace pension?

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

Rob.b_2

Thanks for the help. I think I will need to get a IFA to look at it as it is a complete mystery to me on all the bonuses, penaltys etc.