Consolidating your pension
Many people build up several pension pots throughout their career - over time these multiple pension pots can be difficult to keep track of and manage. A simple solution is to consolidate these pensions into one SIPP, making managing your retirement savings much more straightforward.
What should I consider when consolidating my pensions?
- Will your existing pension scheme charge you an exit penalty or make a market value adjustment to your fund?
- Will you lose any valuable benefits or features if you transfer your pension? For example do you have a guaranteed annuity rate or the ability to take more than 25% of your fund tax free
- Are you a member of a final salary scheme where the income at retirement is guaranteed for the rest of your life – if so you are probably better off not switching and it may be worth contacting a suitably qualified financial adviser
- Does your current pension offer a pension to your spouse when you die?
- You should compare the costs of your existing pensions to the cost of the SIPP
- Does your employer contribute to your current pension scheme and will they contribute to a SIPP?
- Can you access the investments you want via your existing pension?
- If you sell your investments to transfer cash to your SIPP you will be ‘out of the market’ and could lose out on any gains in the stockmarket whilst the transfer is taking place. It is possible to transfer investments to your SIPP without selling them.
How do I track down ‘lost pensions’
If you have lost track of a pension the Government’s free Pension Tracing Service may be able to help you. Visit www.gov.uk/find-lost-pension or call 0345 6002 537 for more details.
How to move your pension to AJ Bell Youinvest
You will need to open a SIPP first. This can be done online and takes under 10 minutes.
Once you have a SIPP with us please complete a SIPP transfer in form, print it and send it to us. If you want to transfer any investments to your SIPP please provide details on the transfer form.
Your current pension provider may also have forms they require completing, if so please fill them in and send these to us with your transfer form.
When we have received your form(s), we’ll contact your current pension provider to arrange the transfer. If they need any additional paperwork to be completed we’ll arrange this. Once we receive your pension fund we’ll send you an email confirming it has arrived. If you are transferring investments the process can take a little longer.