Visibility and control
How much do you have in retirement savings right now? If your pension pots are combined into one place, it means you’ll only need to access one account to get the full picture of your retirement savings. This could make it easier to see your progress and manage your money. Also, with fewer accounts to keep track of, it could reduce the chance of you forgetting or losing a pension – keeping you more in control.
Pensions come with certain charges, no matter what provider you’re with. These generally include a handling or administration fee for managing your money, plus a charge for investing your money – known as fund management. Having more than one pot could mean you’re paying multiple charges.
Combining your pensions into a single pension pot, means you’ll only have one set of charges. This makes it easier to see how much you’re paying and could potentially save you money if your charges are higher in plans elsewhere. However, there’s no guarantee that combining pension pots will result in the total charges you pay being cheaper. So, remember to compare the charges first before transferring.
Save yourself time in the future
By having one pension pot, instead of several, you might find it easier to access your funds in the future. The convenience of a single pot means you won’t have to trace lost pensions or contact multiple providers to withdraw your savings. It could also reduce the amount of paperwork you have to handle.
More flexibility for life beyond work
Sometimes more modern pensions offer more options for taking your money when you’re ready, compared with older styles of pension. This could include flexi-access drawdown, for example, where you can withdraw money gradually over time. So, combining them into a newer pension plan might give you more flexibility once you retire.
Align investments with your values in one pension pot
You may choose to align your investments with your personal values and having all your pension pots in one place may make this easier. For example, making sure your money is invested in funds that avoid companies with a potential to harm the environment, such as fossil fuels.
If you’re confident with investing, or have the help of a financial adviser, you could combine your pension pots into a single plan that gives you the ability to meet your chosen criteria. This could help give you peace of mind in how your money is invested while keeping it in one place.