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This may sound obvious but thats why I'm asking - am I missing something?
I've 3 x small pensions running since I was 18 (30yrs) now worth a fair chunk but not performing particularly well. Its is sensible to consolidate those into my main pension, which is an HL SIPP spread over various funds currently performing consistently at 33% or so?
Or, should I leave them until retirement to spread risk, and consolidate shortly before retirement for ease of managing the withdrawal of funds from a single pot?
For most people it comes down to the "cost to change". There's usually a transaction fee for moving the "old money" to the "new account" and the price negates much of the interest built-up. New company doesn't want to give you interest on money you didn't earn with them, nor manage the movement of the funds.
I consolidated all mine and they're performing better than if they'd been left.
Can you change the investments in the old pensions to ones you believe will perform better?
currently performing consistently at 33% or so?
33% per year? Blimey.
I have consolidated all mine into four different larger SIPPs. I'm keeping the four going as I want to de-risk having one SIPP hacked or the provider folding etc. Even if I might get the money back eventually I'd rather wake up to find someone has run off with 25% of my retirement fund rather than 100% of it.....
33% per year? Blimey.
No overall!
I’m keeping the four going as I want to de-risk having one SIPP hacked or the provider folding
I'm thinking this to reduce risk. My statements - from the new company as the old one was acquired - come with some advise about reducing cost, I'd bets read them I think.
Depends on what type of pension fund they are. Defined benefits leave well alone if the sums are big was the advice I recently received.
an HL SIPP spread over various funds currently performing consistently at 33% or so?
After today's fun and games in the market I bet that figure will need to be adjusted.
I daren't check mine; I'm not going to until the Cornetto virus blows over.
I consolidated my work pensions a while back for ease of management. Now I wish I hadn't for the sake of risk reduction. Performance wise, no idea if it would have made a difference - probably nothing remarkable.
After today’s fun and games in the market I bet that figure will need to be adjusted.
Yep, 25%. But I'm not retiring just yet, and since my matched pension contribution is currently buying cheap I'm not worrying.
I daren’t check mine;
I did, quite a shock! Just as well I won't be retiring for a while yet......
I'm shit with pensions. Isn't there a way to check all the pension you've had in the past? I've found a few but I think there are some missing.
It can be worth it for small pensions that you're no longer paying into as they will have a management fee so you're paying several management fees instead of one. That said I haven't bothered to do mine yet (mostly through laziness).
Well I did review them and it turned out to be a mine field. Mine turn out to be in “utilised with profits” fund which if I’ve understood it correctly accumulated bonuses as long as I don’t touch it until my set retirement time date, with those bonus increasing year on year albeit in the last 5 years it gradually gets moved to a safer place. They are with Reassure after being acquired from Guardian Royal Exchange.
The advice comes with a note telling me I may lose benefits if I move to a modern fund, but blimey it’s so confusing I’m not sure what they are. I’m guessing it’s the accumulating bonuses.
Make sure you are not surrendering ‘fringe’ benefits if you choose to consolidate. One small pension pot I have offered more than its current value if I transferred out. I thought ‘cool! No transfer loss’ Until I read the original documents and realised I’d lose some significant death benefits if I did. No wonder they wanted me to transfer.
Also, watch the management fees. I have partial investments from 2 pension pots in the same fund. One pays just under half a percentage point less than the other for ‘management’. A bit of a con really as it’s a tracker fund anyway. Watch you’re not consolidating to pay more. And really watch that transfer loss/cost.
I’m shit with pensions. Isn’t there a way to check all the pension you’ve had in the past? I’ve found a few but I think there are some missing.
Unfortunately not. Write down a list of all the companies you have worked for and then try and tick off the pension for each one.
I'd recommend consolidating all the not final salary ones into a single SIPP, just to make it easier to keep track of them.