Most people, during their career, accumulate a number of different pension plans. Keeping your pension savings in a number of different plans may result in lost investment opportunities and unnecessary exposure to risk. However not all consolidation of pensions will be in your best interests. You should always look carefully into the possible benefits and drawbacks and if unsure seek professional advice.
It's important to ensure that you get the best out of the contributions you've made, and keep track of your pension portfolio to make sure it remains appropriate to your personal circumstances. Consolidating your existing pensions is one way of doing this.
Pension consolidation involves moving, where appropriate, a number of pension plans – potentially from many different pensions' providers – into one single plan. It is sometimes referred to as 'pension switching.'
Pension consolidation can be a very valuable exercise, as it can enable you to:
Bring all your pension investments into one, easy-to-manage wrapper
Identify any underperforming and expensive investments with a view to switching these to more
Accurately review your pension provision in order to identify whether you are on track
Why consolidate your pension?
Traditionally, personal pensions have favoured with-profits funds - low risk investment funds that pool the policy holders' premiums. But many of these are now heavily invested in bonds to even out the stock market's up and downs and, unfortunately, this can lead to diluted returns for investors... Click Here to read further and to download 'A Guide to Pension Consolidation'.
CFS Independent Financial Advisers
Lower Blyth Suite, Kirkley Hall,
Ponteland, Newcastle upon Tyne NE20 0AQ
Telephone: 01661 821110
Fax: 01661 824296
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