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Pension Consolidation

Do you have multiple pension pots, but you aren’t sure how or if you should combine them?

Pension Consolidation: How to Combine Multiple Pension Pots

Keeping up with your retirement savings isn’t always easy, especially if you have contributed into multiple pension pots over the years. The fact is, many of us work for numerous employers throughout our lives, often joining a new workplace pension scheme every time. This translates into an awful lot of paperwork to stay on top of, making understanding your pension even more complicated than it already is.

Luckily, pension consolidation can make things easier to manage, and the dedicated pension team at Black Lion Wealth Management is here to educate and support you throughout the process as much as possible. We have all the answers to any of your questions related to how to consolidate pensions or how to combine your pension pots.

What is Pension Consolidation?

In a nutshell, pension consolidation means combining most or all of your pension pots into a single one. If you work for numerous employers throughout your career, you may build up quite a collection of different pension schemes and/or pension pots. You might also have personal pensions, especially if you were self-employed at some point.

When the time comes, you will have to decide whether to combine your pensions or leave them separate – and you don’t have to wait until retirement to make that decision! Determining the right course of action will depend on a number of factors, including the types of pensions you have, how much they are worth, how well they are being managed, and whether you have any special guarantees attached to them.

Pensions are complicated; that’s why talking to a professional pension adviser at Black Lion Wealth Management can help to ensure that you are ready for your retirement and have a full understanding of how to consolidate your pensions.

Benefits of Consolidating Pensions

While consolidating your pensions can mean some extra work, there are certain clear benefits that make it more than worthwhile.

  1. Improved Investment Performance

“How to combine pensions?” is a natural question that comes to mind when you receive lots of different annual statements that show some pensions outperforming the others. The truth is, certain pensions will always have better investment options than their alternatives, and pension consolidation could help you take advantage of those.

Remember that better investment performance will translate into a bigger pension income in the future, and, therefore, a higher quality of life during your retirement years.

  1. Fewer Charges and Fees

Fees charged by pension plans should also not be overlooked. Combining your pensions could mean getting rid of higher charging plans, even though it isn’t always easy to find all the information related to the costs of a particular pension plan.

  1. Making Life Easier

Did you ever have to write countless change-of-address letters when you moved? If you don’t have to deal with many pension plan providers, you would have less correspondence and annual paperwork to keep track of. It will also be considerably easier to turn your pension into an income when the time comes to retire.

In addition, if you combine all your pensions on a modern investment platform, you will be able to manage everything online and eliminate the paperwork altogether.

The Case Against Consolidating Your Pension

  1. Added Advantages

Some types of defined contribution plans have additional benefits you would lose if you move that pension money elsewhere. That could include a guaranteed annuity rate (which is the rate at which your pension money is turned into an income) – this will almost certainly be higher than you would get on the open market. It could also include a higher than expected tax-free lump sum entitlement (25% is the normal maximum).

  1. Investment Detriment

If your pension is invested in a With-Profits fund, there may be a Market Value Reduction applied. Although that isn’t necessarily a show-stopper (the reduction might be pretty small), it certainly needs considering.

  1. The Cost of Consolidating

For most people, asking a financial adviser to look at their pensions is the best option. That way, you can be sure that all the critical factors are accounted for. But you do have to consider the advice fee that would be payable.

And finally, some of the work in consolidating will be up to you – digging out policy numbers and addresses, for example.

How to Consolidate Your Pension?

While combining pensions on your own can turn into a lengthy and stressful ordeal, it doesn’t have to be complicated when you leave all the hard work to Black Lion Wealth Management.

Step 1: Contacting a Professional Financial Adviser

The first step to consolidating your pension is determining whether it is the right move for you. While pension consolidation, undoubtedly, offers valuable benefits, there are certain cases in which it isn’t the right option. Some pensions offer attractive features that you wouldn’t want to miss out on, while other types of pensions can’t even be consolidated!

Talking to an experienced financial adviser at Black Lion Wealth Management can help to clear the air.

Step 2: Paperwork Review

We will carefully go through all of the pension paperwork with you and contact all the providers on your behalf to help you get a clear picture of your pension arrangements. We use our own software that allows you to upload all of your documents and complete all of the fact-finding directly from your phone, tablet, or computer, making the process even easier.

Step 3: Recommendation

We will then provide you with a clear recommendation based on your retirement goals and preferences. The fact is, there is no single correct answer when it comes to combining and managing pensions, which is why tailored advice by a seasoned professional is of utmost importance.

Step 4: Pension Consolidation

If pension consolidation is the right way to go, we will take care of all the processes on your behalf, freeing you from confusing paperwork and lengthy phone calls.

Book a Free Pension Consolidation Initial Consultation with Black Lion

Without a doubt, pension consolidation offers an attractive array of benefits for both people nearing retirement and younger employees who have already changed several jobs. However, tracing and consolidating your pensions into one product can quickly become stressful and time-consuming.

Luckily, you are not alone in this. At Black Lion Wealth Management, we understand that pensions are complicated, so we work closely with our clients to make things easier to understand and educate them along the way about all the ins and outs of how to consolidate pensions. Contact us today to book a free pension initial consolidation consultation with one of our expert pension advisers.

Free Initial Consultation

Call us on 0203 146 2259

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If you are outside the UK please give us a call on 02031462259 or email us at info@blacklioninsurance.co.uk"

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If you are outside the UK please give us a call on 02031462259 or email us at info@blacklioninsurance.co.uk"

Important Information

The value of Investments is not guaranteed and can fall as well as rise and you may not retain the amount you originally invested.

If you drawdown too much Income or your investments underperform, you run the risk of running out of funds.

The Financial Conduct Authority do not regulate inheritance tax planning and trusts.

Both Black Lion Insurance & Black Lion Wealth are Trading Styles of PRG Protect Ltd

Pensions Advice

How Black Lion Wealth Can Help

We offer specialist advice on:

Self-Invested Personal Pensions (SIPPs)

A self-invested personal pension (or SIPP) is a type of defined pension scheme.  In other words, it’s a private personal pension plan that enables you to plan for your later years, when you are no longer working.

Ideal for contractors, director and the self-employed, a SIPP empowers you to be in control of your pension’s investment strategy.  There are some useful tax and legacy planning opportunities, too. Moreover, your spouse and your family could benefit.

Of course, the value of your retirement benefits will be determined by the amount of contributions you make and the period over which you make them.

The team here at Black Lion Wealth will be happy to offer you our advice to help you choose the right options.

Pension drawdown advice

Part of the pension freedoms legislation of 2015, access to your own pension funds now offers powerful flexibility and personal autonomy.

However, pension advice from Black Lion Wealth could offer you all the financial security and peace of mind that you need.

Apologies, but you have to know what you’re doing here.  We understand every part of this regime.  This means that we know how to protect your hard-earned money from too heavy a tax burden.  Also, how to pass on its benefits to your family after your death.

If you drawdown too much Income or your investments underperform, you run the risk of running out of funds.

Don’t leave it to chance.

Annuities

An investment in an annuity (buying a product that pays an income each year until you die) was – before 2015 – and still is, a viable aspect of retirement planning.

However, there’s a long list of considerations to think about here.  In other words, things to know and understand, such as fixed, variable, deferred income – lots of complicated terms.

Make sure that you get the advice you need from us before you decide.

Pension switch and consolidation advice

In our lifetime, most of us will have more than one job, each with a pension scheme as part a remunerations package.  You may wish to ask us about how to gather together all your “pension pots” into one place.

Not only can we offer you the benefit of our experience and expertise, we can also put the consolidation process into action.

Pensions – where we are now

The range of pension options on the market has never been broader.

On the one hand, this is good news for the canny investor.  On the other, how do you know that you’ve made the right choice? How much should you save?  What are the different types of pension products out there?

We hope that we’ve convinced you to consider pensions advice.

We’re all living longer.  The retirement age is rising.  Life isn’t going to get any cheaper any time soon.  Building up your own private nest will make your retirement easier to plan.  Do the right thing today. Give Black Lion Wealth a call.  We’re here to help.

Get in touch

About Us

We are a dedicated team of financial advisers, with years of experience in guiding our clients to a solution that meets their specific needs. We specialise in helping both employed and self employed individuals, as well as business owners on a variety of solutions, which range from life insurance, income protection insurance, keyman insurance and shareholder protection insurance.

The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK

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Black Lion Insurance & Black Lion Wealth are a Trading Style of PRG Protect Ltd

PRG Protect Ltd: Registered in England & Wales, No. 08286239.  Registered Office: 51 The Parade, Cardiff, South Glamorgan, Wales, CF24 3AB