I’m confused

May 27, 2021

I’m confused

Posted by Stephen Casey

When I get out and about I often find myself doing site visits for corporate clients where we try to unravel the mysteries of Pensions for pension scheme members.

Typically I will hear comments such as “My mate says they’re a waste of time”, “do you seriously think I read all this stuff”, and “I’ll never understand so have never really tried – its all Swahili to me”

Thankfully by the end of our chat they are usually somewhat wiser – Pensions are just a tax efficient way of saving to supplement State benefits in retirement – a way of avoiding a life of baked beans

People build up small pension pots from sometimes numerous previous employers, get bits of correspondence at different times of the year from different sources , so its understandable that they lose sight of what their overall retirement position might look like. Hands up, our industry hasn’t really painted itself in glory when producing plain Englished communications

Often we see benefits in bringing everything together within one arrangement, known as consolidating pensions, with the added advantage that as opposed to taking advice from your mate, you have recourse if we get it wrong.

Here’s some of the benefits of switching your pensions into one plan:

• Complete picture of your pension savings – it can be difficult keeping track of multiple pensions. If you combine them into one plan, you’ll have a complete picture of how much your pension savings are worth now and what you could have when you retire.

• Less paperwork – keeping on top of paperwork for multiple pensions can be very time-consuming. If you combine your pensions into one plan, you’ll only have one set of paperwork from one pension provider.

• More choice and flexibility – when the time comes, you’ll want to access your pension savings quickly and easily. If you combine your pensions into one modern, flexible plan, you could have more choice over how and when you access your pension savings and the option to leave money behind for loved ones when you die.

• Potentially lower charges – combining your existing pension plans into one plan means you’ll only pay one plan charge. Some providers reduce their charges if you have a higher amount of pension savings. So by combining your existing pension plans, you could benefit from lower charges – this means your pension savings could be worth more when you retire, and your income could last longer.

• More suitable investment options – your pension savings will have a coherent and consolidated investment strategy. A modern, flexible plan could also offer more suitable investments to suit your needs.

Of course, pension switching isn’t suitable for everyone. Depending on the type of plan you have, transferring your pension savings into another plan may not be in your best interests, as you could lose valuable benefits which can’t be replaced.

But we’re here to help……..I quite like Baked Beans actually


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