Should I combine all my old pensions into one?

It is common to accumulate multiple pensions throughout a lifetime and it is also common to consider merging them into one. After all, we now live in a Marie Kondo world where tidy supposedly equals best.

Whilst consolidating pensions is usually possible, it is important to consider all the facts before jumping in.

The starting point should always be to establish whether you are likely to be better off as a result of consolidation.  It is tempting to assume this is a question of cost but cost only tells part of the story… there’s a reason we don’t all drive the cheapest car on the market, after all!

Other important factors such as retirement flexibility, investment options, guarantees and penalties all need to be carefully weighed against one another.  This is far more nuanced than a simple pounds and pence calculation, and the outcome will also depend to a large degree on your own unique aims and objectives.

Consolidating certainly can have its advantages, but each case should be judged on its own merits.  Be wary of firms that offer you a ‘simple’ consolidation solution – pension transfers are very rarely simple.

If you are considering moving your pension start the conversation with a Kingswood Wealth Planner for advice that’s tailored to you.

By Joe Howard, Kingswood Wealth Planner

KW Wealth Planning is authorised and regulated by the Financial Conduct Authority.