September 1, 2023
Hannah Ripley is one of Talis IFA’s pensions specialists, and has helped many clients to maximise the benefits of their scattered pension pots by consolidating them. She explains the benefits of pension consolidation and why it’s important to ask an IFA for help.
“A lot of the clients I help have pensions from multiple places of work, spread across different providers so they’re not really sure what they have, and struggle to keep track. When ‘auto enrolment’ into a workplace pension was first introduced in 2012, it was a good start for many people but it means that keeping on top of multiple pots will continue to be a common issue. For some clients, putting all their pensions into one place, known as consolidating, is exactly what they want and need.
“Consolidating can really help you keep track of your pension money, simplifying things and making it much more cost-effective.
“But there can be risks, or complications, which is why you need the help of an IFA. Some pension providers offer guarantees or benefits for keeping the money with them, and if you move your money out, these valuable benefits can get lost and you won’t be able to access them again. Some providers will also charge an exit penalty for leaving them, so the value of your pension fund can instantly be reduced as a result. This information isn’t always obvious, and isn’t necessarily provided in your Annual Statements, so if you don’t know where to look or what questions to ask, you can make yourself worse off by doing it.
“This is why our advice as IFAs is so valuable. We know what to ask and where to look, so we can make you aware of the impact of consolidating your pensions, remove the guesswork and put you into the position to make an informed decision.”
If you’d like to explore how we can help, click here to find a Talis IFA.
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