Should I Transfer My Pension?
Understanding what you have in your pension will give you a good understanding of where you are, respective to where you want to be with your retirement goals. If you have a number of different pensions, it can be difficult to keep track. For the sake of simplicity, it might be worth bringing all those pensions into one account.
The process of bringing all of your pensions together is called consolidation or a transfer.
What are the Advantages of Pension Transfer?
There are a number of advantages to this approach, for example:
- You’ll only have to deal with one provider which could make life simpler.
- If you decide to buy an annuity, when you want to take benefits, you’ll only receive one payment each month (if you so choose) this can make managing your income more manageable because it will mirror how you were paid when you were working.
- If you’re likely to buy an annuity, you could receive a better annuity rate as your account will be bigger and some companies offer better rates depending on the size of your pension account.
- Should you decide to receive an income via ‘flexible drawdown,’ having all your pension savings in a single pot will provide a more focused approach to calculating the level of income you could receive.
Though there undoubtably many benefits to consolidation, there are also some issues to consider before make the decision. For example, it’s important to make sure there are no penalties if you transfer your account from one provider to another. Also, it’s crucial to understand the benefits of your existing policies. Some companies offer ‘Guaranteed Annuity Rates’and these can provide a much higher income than today’s annuity rates might offer. Any ‘Guaranteed Annuity Rate’could be lost if you consolidate your pensions. We can work with you to make sure that you are able to make an informed choice by taking you through a full pension review.
If you are interested in consolidating your pension accounts, please contact us to start the process today.