It’s common these days for individuals to accumulate a collection of small pension pots over the course of their career. Frequent job changes can mean that retirement savings can end up being complex. A few years’ service in several different jobs can result in pensions being dotted around – it’s a price that many people pay if their ambition prompts them to move to a new employer.
Where this happens, it’s often worth reviewing all of your current arrangements and establishing whether there is any value in combining these sums. There can be advantages to having small funds, such as being able to take the whole amount in cash rather than being forced to draw an income. Other factors that come into play are possible penalties for moving to another pension fund, or the management fees, which might be higher in a different fund.
So, while there can be positives to bringing various pension plans together in a single arrangement, the decision to transfer out of a scheme should not be taken lightly, and the correct course of action can differ from person to person. Getting the decision wrong can prove to be an expensive mistake, which can have a lasting impact down the line.
It’s also important to get your choice of pension provider right. If you live in Shropshire and you’re in need of retirement planning advice, our team at Hartey Wealth Management would be happy to help you review your pension arrangements.