Simple ways people with several small pension pots can make the most of their retirement funds
18.04.2023 - 11:27
/ dailyrecord.co.uk
Most people have a number of jobs throughout their working life and with this, multiple pensions, especially after auto-enrolment began in 2012. The average UK worker is expected to have 12 jobs throughout their life meaning keeping track of multiple pensions could get a bit tricky.
The Department for Work and Pensions (DWP) recently announced the Pensions Dashboard Programme has now been delayed. When this does finally launch, it will allow everyone with a pension - including a State Pension - to view all their retirement pots in one handy place online.
According to recent research, almost £27 billion is currently being lost in forgotten pension pots, however, Sam Robinson, Principal Financial Advisor and Pension Transfer Specialist at Almond Financial, has shared his top tips on the pros and cons of pension pot consolidation and how workers can get the most out of their money in later-life.
Sam explained some workers choose to consolidate their pensions in one place, or a ‘pot’, allowing easier management and ensuring they aren’t forgotten. Although it is important to note, that every pension system is different and pension pot consolidation may not be suitable for everyone.
Consolidating your pensions boasts a number of benefits including:
Sam said: “There is no doubt, consolidating your pensions will not be for everyone and it’s critically important to evaluate both the pros and cons of doing so before making any decision. When it comes to pension pot consolidation, it’s certainly not a one size fits all approach.
“Ensuring you have the appropriate processes in place for life after work will ease any concerns you may have.
“Managing your pension can be a daunting task but if you aren’t sure where you can start,