Do you have a ragbag of old pensions from previous employers?
If you have a number of ‘old’ pensions from former employment you may wish to consider consolidate them to make them easier to manage, reduce charges and have better investment opportunities. This applies even if your former employer offered a final salary-related scheme. In those (rare) cases it almost always makes sense to leave them alone, but to make sure what you have is safe and will do as promised an independent review is a sensible course of action.
With Final – salary schemes, contrary to popular opinion, you are not guaranteed anything. You are promised. With increasing publicity about these types of schemes closing down you may discover what has been promised cannot be met. No harm in finding out. One key issue within these types of schemes which may be very important to you is the death benefits. Who gets what should you die in retirement or before taking benefits?
Death benefits can vary significantly with the worst case being that your beneficiaries receive nothing. Once again best to check.
If you have other pension types from former employment, it’s likely your old contributions are in group personal pension or money purchase schemes that are festering away under high charges and poor performance.
You have a choice: either consolidate the money into the pension scheme run by your new employer (although they may not accept transfers in anyway) or put them into an alternative plan under your control.
Seek out an Independent Pension Specialist and get your plans reviewed. The sooner the better.
