Consolidating Pensions

Dynamic_Panda

Over the years I have acquired various pensions from different jobs I have had - I have obviously seen adverts for places like Pension Bee which help you to consolidate them all in to one place - I just want to know what experiences people have had in consolidating works pensions into one place - did you use a financial advisor or a company that will do it for you - how easy was it to do - I think there are about 8 or 9 in total over a 35 year period - I will be 60 this year and although I now have to work till I am 67 (in theory) I would like to get this in order so that I can look at what options I have for the future - thanks in advance

Marcon

Dynamic_Panda said:

Over the years I have acquired various pensions from different jobs I have had - I have obviously seen adverts for places like Pension Bee which help you to consolidate them all in to one place - I just want to know what experiences people have had in consolidating works pensions into one place - did you use a financial advisor or a company that will do it for you - how easy was it to do - I think there are about 8 or 9 in total over a 35 year period - I will be 60 this year and although I now have to work till I am 67 (in theory) I would like to get this in order so that I can look at what options I have for the future - thanks in advance

This may make helpful reading: https://www.thisismoney.co.uk/money/pensions/article-3550085/STEVE-WEBB-merge-small-pension-pots.html before you conclude having them all in one place is likely to be best for you.

dunstonh

 I have obviously seen adverts for places like Pension Bee which help you to consolidate them all in to one place - I just want to know what experiences people have had in consolidating works pensions into one place

Virtually all defined contribution pensions will accept transfers in from others.    However, you should make sure that what you have is not better than what you are transferring it into.

I think there are about 8 or 9 in total over a 35 year period - I will be 60 this year and although I now have to work till I am 67 (in theory) I would like to get this in order so that I can look at what options I have for the future - thanks in advance

At this stage, consolidation should not be a priority.  Forward planning should be and then once you have that sorted, then look at which plans should be consolidated or not.

xylophone

Are any of them DB/other with safeguarded benefits valued at over £30,000?

Have you obtained a state pension forecast?

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

If so, what exactly does it say?

Dynamic_Panda

xylophone said:

Are any of them DB/other with safeguarded benefits valued at over £30,000?

Have you obtained a state pension forecast?

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

If so, what exactly does it say?

None are worth over £30000 as far as I am aware. I have checked the state pension and I cannot claim that until June 2029 and it has given me a weekly amount which is the max I can claim. I am just trying to look at what options are available and how to consolidate it all if that is possible. - just to add I plan to reduce my working hours when the mortgage is paid off in December 2024

xylophone

If any of these pensions are defined benefit pensions, you need to consider what is offered at scheme retirement age - lump sum/commutation/index linking etc.

With DC pensions, you need to consider where they are invested and the fees charged by each provider.

Do you have a pension with your current employer?

If so, what type is it?

Dynamic_Panda

xylophone said:

If any of these pensions are defined benefit pensions, you need to consider what is offered at scheme retirement age - lump sum/commutation/index linking etc.

With DC pensions, you need to consider where they are invested and the fees charged by each provider.

Do you have a pension with your current employer?

If so, what type is it?

I do indeed have one with my current employer - I believe it is a DC one but would need to check - the latest update is on my work laptop which I will check on Monday when I log on.

Some of them would allow me to take them at 60 but I don't want to do that because the amounts are quite small...........

Albermarle

Dynamic_Panda said:

xylophone said:

If any of these pensions are defined benefit pensions, you need to consider what is offered at scheme retirement age - lump sum/commutation/index linking etc.

With DC pensions, you need to consider where they are invested and the fees charged by each provider.

Do you have a pension with your current employer?

If so, what type is it?

I do indeed have one with my current employer - I believe it is a DC one but would need to check - the latest update is on my work laptop which I will check on Monday when I log on.

Some of them would allow me to take them at 60 but I don't want to do that because the amounts are quite small...........

If they are DC pensions , you can take them at 55 . Usually there is an arbitrary retirement date in the providers system for reference only , that you can ignore .

If they really say you can take them until 60 , then it is not just a simple DC pension.

If you do cash a DC one in , you will get 25% tax free and 75% taxed at your normal rate . However after that you will be limited to adding £4K pa to your pension ( includes your contribution+ tax relief + employers contribution) .
Unless the amount is under £10K and you withdraw it under the 'Small Pots rule' than the £4K restriction does not apply.

kuratowski

Dynamic_Panda said:

I just want to know what experiences people have had in consolidating works pensions into one place - did you use a financial advisor or a company that will do it for you - how easy was it to do

I did exactly this a while back (and I continue to consolidate whenever I move jobs - I'm an incorrigibly disloyal employee, who moves on every few years )

At the start of my DC pensions journey, I had very little knowledge, and I took advice from an IFA on whether and how to consolidate my ex-employer pension pots into a SIPP.   All it required from me was to give them my details, and read and sign the paperwork.  The IFA continues to advise on the pensions, and other aspects of tax and retirement planning, as part on ongoing servicing agreement.  Personally, I still find this useful, despite being better informed these days.  I would emphasise that the point of a financial adviser is not primarily about selecting investments, but rather interpreting the various rules and legislation, and figuring out what suits your personal circumstances.  Rules change, and your circumstances change too, so ongoing advice is actually of value IMHO.

However, many people do point out that the fees you pay to a professional adviser are perfectly avoidable, if you are prepared to do a bit of reading (e.g. MoneyHelper Pensions Basics).  Especially on smaller pot sizes, the fees for advice may be relatively high, so if you are confident doing it yourself, you will save quite a few £.  As a rule of thumb if your total pots, all added together, are under £100k, then advice fees are likely to be disproportionately high, and in fact a majority of advisers said they would be reluctant to take on a client with less than £100k invested (see Which? How much financial advice costs).

xylophone

it has given me a weekly amount which is the max I can claim. 

What exactly does the forecast say?

Is a COPE shown?

https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-forecast-explained-a24r12y9jt41

Make a list of all your pensions and the providers/administrators.

Do you have scheme guides/policy documents?

You mention age 60.

Are you saying that you have pensions for which the normal scheme retirement age is 60?