With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.
With the State Pension no longer enough to sustain the lifestyles we all want to lead following retirement, calling on multiple savings and investment funds is a popular option for many individuals. In addition to this, as your career has evolved over the years you may find that you have a selection of workplace pensions from your previous employers, a common factor that can make it difficult to determine and manage your retirement savings effectively.
Pension consolidation is a term used heavily throughout the personal pensions sector in Derbyshire and the rest of the UK, but what does it mean and is it the right step for you?
What is pension consolidation?
As we mentioned, over the years it is likely that you have contributed to a variety of pension plans and products, particularly if you have changed employers during your career. Pension consolidation essentially means combining all the pension products you have contributed to during your working life and accessing them as a single pot using an approved pension ‘wrapper’.
Why combine your pension plans?
In the years before retirement consolidating your pension can make it easier to determine what you are entitled to and how you should budget for life after retirement. Many individuals who consolidate also reduce the management costs associated with each product, which leaves more funds for you to put aside.
Whilst combining your pension funds could mean easier access to more cost effective retirement planning, there may be termination penalties that are applicable. Your independent financial adviser will be able to help you determine whether pension consolidation is right for you and your circumstances.
Start planning effectively for retirement today by calling Slater Financial on 01298 212444 to book your free 90 minute consultation.
*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*