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Pension consolidation

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Hi. I am trying to see if anyone has experience with pension consolidation for example Bee.
I have 3 small pension pots from employment and would like to think that by combining them they will do better.
I know nothing about pensions and it just confuses the hell out of me. I also have current employment pension.

Can anyone offer any advice.
Thanks in advance.

Comments

  • cfw1994
    cfw1994 Posts: 2,127 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    If your current employment pension includes company contributions (which I think it now has to?!), be sure to feed that as much as you can (& certainly to get maximum company contributions).

    I have a few smaller pots from previous work. Check if there are any guaranteed benefits. If not, and if your annual statements suggest they aren’t doing well, then it should be simple to transfer: mine was.
    If your company scheme looks good, transfer it there.

    Some might say it is good to have >1 pot anyway, so a separate SIPP may make sense....but if you don’t spend time researching, then maybe keep things simple, or indeed find an IFA to pay for advice...
    Plan for tomorrow, enjoy today!
  • OldMusicGuy
    OldMusicGuy Posts: 1,768 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    If they are defined contribution pension pots, you can combine them. I combined 6 into 1 at no cost to me. However, the performance is not affected by the consolidation per se. They are just easier to manage (as you have 1 instead of 3). You need to educate yourself about how pensions work, because it's the choice of where the funds are invested that affects performance, not how many pension pots you have. You could combine the pensions into 1 and see them do worse based on how you choose to invest them in the new single pension.

    I suggest you do some reading around the web or get a copy of "DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning" by John Edwards to understand more about pensions.
  • dunstonh
    dunstonh Posts: 119,697 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I am trying to see if anyone has experience with pension consolidation for example Bee.

    It is a routine transaction for most IFAs.
    I have 3 small pension pots from employment and would like to think that by combining them they will do better.

    You may like to think that but very often it is not the case. I would estimate, after doing thousands of them over the years, that around 1 in 4 are best left where they are.
    Can anyone offer any advice.

    Any local IFA can. Bee cannot.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 45,615 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    3 small pension pots from employment

    What kind of pensions?
  • Albermarle
    Albermarle Posts: 27,896 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Whilst following the good advice above , you could as a start make an enquiry to your current workplace pension if they will accept transfers in of other pension pots.
    At least you will then know if this is an option or not.
    By the way , pensions can seem complicated but they can also mean the difference between a comfortable retirement , or not. So worth spending some time getting to understand them a bit better, and if you are like most people, you probably need to increase how much you have putting into one each year.
  • I wouldn’t recommend PensionBee at all... I stupidly consolidated my pension pots with them from Scottish Widows and since doing so I have lost 35% of my investment (biggest drop seen in over 15 years)
    Currently in the process of moving them back out with a more reputable investor.
  • dunstonh
    dunstonh Posts: 119,697 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I wouldn’t recommend PensionBee at all... I stupidly consolidated my pension pots with them from Scottish Widows and since doing so I have lost 35% of my investment (biggest drop seen in over 15 years)

    Are you sure its 35% you have lost? We havent had a 35% loss in any mainstream market and pensionbee investments are basic and mainstream.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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