Consolidating Pensions

[chocolatesaltyballs22]

Hi,

Hope this is the right place for this. I have three separate pension schemes due to having changed jobs over the years. Now that I'm into my 50's I'm conscious that I probably need to tidy up my finances but I don't know where to start. How do I go about consolidating all of my pensions? Are there companies who help with this?

Thanks

You need to decide where to consolidate them first - into one of your existing pensions, or a new one?

It is then as easy as contacting the scheme you want to transfer the others into and giving them the details. I’ve recently consolidated mine into a pension with Nutmeg, and all I had to do after setting it up was give them policy numbers and they did the rest.

Presumably none of them are final salary pensions? If they were then it would be more complicated.

Thanks for your response, no I don't think they are final salary. So my thinking is that I transfer the two previous pensions into my current employer's pension.

I'm assuming you would know if they were final salary or defined benefit pensions as they would be better off being left if they are?

You might want to check out fees and funds available with your work pension as it might be better to combine them into a cheaper separate one? (Then if you leave your current workplace you could move that pension into it too)

I've recently transferred mine into a Vanguard SIPP, and invested in Global All Cap, but they also do a target retirement fund that might be better for you? Very easy to transfer, just need to give them the fund details and they will do it all for you.

Thanks again...I think my middle pension WAS final salary but was changed before I left that company. This is nearly 20 years ago so the details are a little hazy...need to dig out the docs.

In terms of my current pension fund, my employer contributes into it as well. Does this stop me from transferring everything into an independent pension scheme?

@chocolatesaltyballs22

Thanks again...I think my middle pension WAS final salary but was changed before I left that company. This is nearly 20 years ago so the details are a little hazy...need to dig out the docs.

In terms of my current pension fund, my employer contributes into it as well. Does this stop me from transferring everything into an independent pension scheme?

My partner has his work pension transferred into his private pension once a year. Not sure how that works as his financial advisor sorts that out for him, but it sounds possible. Personally, I would probably keep my current work pension because I am fairly lazy, and then combine the rest. If your company do a pension match then take that too.

Often when a final salary scheme closes, that part of the pension is ring fenced and still acts as a defined benefit scheme - just the payment is no longer based on your final salary. Often, your salary at the point of scheme closure, updated annually by a pre-determined inflation-type figure.

So don’t assume you can or should transfer it.

First step is to work out what your existing pensions are. If your middle one was defined benefit from 20 years ago, your first (back in the days when many pensions were more generous!) might also have some features to consider - like GMP. So - get yourself clear on what you have first 👍🏻

Definitely if any part of it is DB do not transfer that out as you lose the DB features.