Consolidating pensions

Most people, during their career, accumulate a number of different pension plans. Keeping your pension savings in a number of different plans may result in lost investment opportunities and unnecessary exposure to risk. However, not all consolidation of pensions will be in your best interests. You should always look carefully into the possible benefits and drawbacks and, if you are unsure of any of this we at Hutt Professional have financial advisers with many years of experience who would be more than happy to offer you the independent advice you need.

Keeping track of your pension portfolio
It’s important to ensure that you get the best out of the contributions you’ve made, and keep track of your pension portfolio to make sure it remains appropriate to your personal circumstances. Consolidating your existing pensions is one way of doing this. We at Hutt Professional are able to do this if you wish to have no worries in regards to looking after your pensions and, instead have someone else do all that work for you.

Pension consolidation involves moving, where appropriate, a number of pension plans – potentially from many different pensions’ providers – into one single plan. It is sometimes referred to as ‘pension switching’.

Pension consolidation can be a very valuable exercise, as it can enable you to:

Bring all your pension investments into one, easy-to-manage wrapper

Identify any underperforming and expensive investments with a view to switching these to more appropriate investments

Accurately review your pension provision in order to identify whether you are on track

Why consolidate your pensions?
Traditionally, personal pensions have favoured with-profits funds – low-risk investment funds that pool the policyholders’ premiums. But many of these are now heavily invested in bonds to even out the stock market’s ups and downs, and, unfortunately, this can lead to diluted returns for investors.

It’s vital that you review your existing pensions to assess whether they are still meeting your needs – some with-profits funds may not penalise all investors for withdrawal, so a cost-free exit could be possible.

 

If you are due to retire or have a pension or a number of pensions and wish to seek independent financial advice, we at Hutt Professional have financial advisers with many years of experience who would be more than happy to offer you the independent pension advice you need. If you are located in leamington Spa or surrounding areas and wish to seek independent financial advice , please do not hesitate to contact us as we would be more than happy to appoint you with the correct financial adviser that would suit you best.