Should I use Monzo to combine old pensions if money confuses me?

[Username19893847477374]

Some context, I am hugely out of my depth with money. I'm 40, never had anything, never had financial plans or money spare, just lived paycheck to paycheck.

I've now paid off all credit cards, and started very small savings, and now thinking I need to sort out all my random pension pots I have after working many short term jobs over last 15 years.

I have a Monzo card and it has a pension function. Because of my very low level of knowledge about anything financial, I'm drawn to use this because it says it will find all my pensions and put them together for me. For someone as ill-informed as me, this seems like an easy way forward. I have ADHD and struggle with admin. I did sit down once to sort this out but a year later, I still haven't completed it.

The Monzo pension thingy has a fee attached which puts me off.

Can I ask advice from people with my knowledge than me - should I use this function to finally sort out my pension? Is it worth it for a 0.25% fee, the investigation of my different pots is prob worth that. Should I then look to move it to somewhere else that has a lower or no fee? How would I do this and how would I find it?

Help!! I feel very stupid and like a child for not getting it. Would really appreciate patient help.

Many pension providers do this service for free. Before you take any steps I would contact a financial adviser. You run the risk of moving your money and losing money if you do this blindly. Having it all together sounds nice but first you need to understand the funds you’re already in and consider where you want to move your money to. You’ll probably find the provider themselves will then do the switch for free as part of the consolidation. I just recently done this with standard life for free.

But does the way you've set off involve me having to contact all the individual providers separately and try to find the different pots myself. I think it's that bit I'm struggling with. I don't remember all my log in information for the different websites and I think with my ADHD, it's proving too difficult to manage on my own.

I suppose what I'm asking for is whether there is a free third party that will do the same as Monzo. I hand over my details, they do the hard work. But then I doubt anyone would do that for free. Would a financial adviser do this for me.

How do I find a financial advisor and what would they cost, roughly?

Thank you for answering

Do the Rebel Finance School course, there’s a new one starting in June, it’s free. I watched all last year’s videos earlier this year and it has absolutely changed how I manage my finances for the better (and I am very likely undiagnosed ADHD). I plan to move an old workplace pension to a SIPP in the next few months but am going to do the new Rebel Finance School course first as I don’t think I completely took in all the info about pensions first time round as I was more focussed on tracking my spending and starting regular investing.

You very likely do not need a financial advisor, I promise you that doing the course will be one of the best things you can do to secure your financial future.

There is a free government service which will find all of your pensions if you search “find pension contact details service” on gov.uk.

If you’ve got adhd and struggle with this sort of thing, do you have a friend who can come and sit with you whilst you do it?

In your position I would choose one pension pot that you’ve already got - eg nest is very common one - and then move everything else into that. Most pensions have a free automated thing to move previous pensions in.

The only exception to this is if you have a pension from a job like teaching or nhs where they promised to pay a certain amount at the end (called defined benefit) rather than pay a certain amount in (called defined contribution). If you’re unsure if you have this, if you’re willing to post what jobs you’ve had, I can tell you.

I’ve also seen this advertised which is free and seems to do what you’re looking for: https://www.gretel.co.uk/

There is a government pensions dashboard service which is coming in October which should do all of the things you are asking for. I'm holding off until then to consolidate all of my husband's many pensions.

https://www.pensionsdashboardsprogramme.org.uk/#latest-news

Pension consolidation of various pots to one provider can be beneficial, it can also be detrimental or have no material benefit depending on what your current pensions are. Certain older style pensions may have special benefits that you would lose if consolidating under a new provider such as Monzo.

I think the first step you need to take is to make a list of all the pension pots you think you have today. Many will send annual statements either my post or on e-mail. Contact the providers to get online access where it's possible. Once you have this detail what the pension pot £ amount is in each pot, what the pension is invested in, what platform and investment fees they charge and whether there are any special benefits with those pensions.
You can then come back here or maybe moneysavingexpert where people may be able to help you understand if what you have is in line with the market or not. If there is a benefit for consolidation then you can look at the best platform for it. Id be hesitant in just using Monzo just because you have a current account with them.

To give you some context, over the past 5 years I have consolidated 5 previous pensions into one provider. My driver for this was to tidy everthing up and to have access to some specific investment funds I didn't have access to previously. I am a Monzo current account customer, but I wouldn't have any reason to use them as my pension provider as there are better options out there in the market.

Having them in one pot is not always a good move. There are separate rules for cashing in small pots at retirement age which can be very advantageous. Nest is also a relatively high fee platform. I second the advice to hold off for now and do the new rebel finance school course before making decisions. An IFA is an expensive route and not needed unless you are very wealthy.

For now make a list of your policies, fund numbers and values. When and if you decide to transfer them you will find all the pensions providers will manage the move for you for free usually and just need this basic information to request transfer. Then each pension fund will contact you to confirm you authorise the move. Takes a few weeks maximum.

What @Hitchens said is spot on

Thanks everyone. Will 100% check out that course. I will try and make a list this weekend of the pension providers I think I have. Really appreciate everyone taking the time to advise me.

I'm also trying to sort my utilities this weekend and review my budget. Can't believe I'm 40 and in this mess, I feel very behind! But better late than never I suppose.

Thank you

My husband and I use pensionbee, i think its free, all my old workplace pensions and my personal pension are on there and I am still putting £5 a week in my personal pension via pensionbee. It"s really easy to see all your money in one place and change your contribution online when you need to. I am not great with money either but my husband is and it's important to him that i know where my money is and how to get it. He remembers helping my mother in tears after my Dad died and she didn't know how to pay the credit card bill.

I was about to recommend RFS and see you beat me to it!

Absolutely take a look at the course. You don’t have to do it “live”, they record the sessions and put them on YouTube. It us a commitment - 2 sessions per week, each about 2 hours long - but it is worth it.

There’s also a Facebook group for people to chat about their financial questions too.

The course it s totally free, no upselling and no sponsors.

https://rebeldonegans.com

Embarrassingly, this is kind of why I am where I am. My ex husband sorted everything for me, car tax, all utilities, etc, it was his thing, and I just didn't get involved. I was 20 when I got married and never bothered to learn. Such a bad decision. Then when we split up, I just coasted by and put my head in the sand.

I've signed up to rebel finance, thank you.

If anyone wants an intro to RFS, this is a good video to watch.

https://www.youtube.com/live/HKvfuc0hW5k?si=sDPMynVylYgh7WFJ