You’ll always feel better once those everyday jobs are out the way.
Our finances are no exception. A little bit of time and effort can make things cleaner and more manageable in the long run.
On average, we each have 11 different employers throughout our lives. That means that the pension pots we collect along the way can be a very mixed bag.
Bringing all your defined contribution pensions together in one place can make them more manageable. Giving you a single summary of how much you’ve saved and where your money is invested, so you can see a clearer retirement outlook.
But there are some times when it doesn’t pay to consolidate - sometimes it’s better to keep your pension pots separate.
If the annual charge you’re paying is less than wherever you’re thinking of consolidating to, it will cost you less to leave your money where it is. There may be exit charges if you move a pension - or valuable benefits of an old scheme that you might not want to give up.
For those with large retirement savings, it can be useful to have access to smaller pension pots to help your financial planning.
If you decide to consolidate, you can do it inside a Self-invested Personal Pension - or SIPP - or perhaps inside your current workplace pension scheme where the charge might be slightly lower.
Or maybe you’re happy to keep things separate after all.
But you won’t know what’s best unless you check. Either way, you’ll feel better once it’s done.