"Many people can accumulate different pension pots as they move from job to job throughout their lives, and transferring these different pensions into one single pot to manage can help to reduce costs and fees, as well as providing a clearer view of their overall retirement savings. This process of consolidation makes it far easier to monitor performance and plan for the future as a result."
"Because you can't reverse your consolidated pensions, you should never transfer different pensions into one pot until you've taken the time to consider your options. With this in mind, let's take a deeper look at three considerations to make when combining multiple pensions: 1. Benefits don't carry over When you transfer pensions, you can take advantage of new benefits that come from the provider that you're transferring to, but you may want to think twice about your actions."
Around 89% of eligible employees in Great Britain saved into workplace pensions last year, representing 21.7 million workers and a 1% participation increase from 2023. Many people accumulate multiple pension pots when moving between jobs. Consolidating pensions into a single pot can reduce costs and fees, provide a clearer view of total retirement savings, and make monitoring performance and planning easier. Transfers are irreversible, so careful consideration of costs, benefits, and hidden charges is essential before consolidating. Defined benefit (final salary) pensions may not be transferable without losing valuable benefits, so comparing provider advantages and downsides matters.
Read at London Business News | Londonlovesbusiness.com
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