Consolidating your pension
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.
Key advantages of consolidating your pensions to a SIPP
- Combined view of all your pension savings allowing easy management and less paperwork
- A market leading range of investments with our SIPP, giving you a greater choice of where to invest your money than a traditional pension scheme
- Full control over your pension savings in a SIPP – you choose what to invest in and when to switch investments
- Ability to manage your SIPP 24 hours a day online, on your tablet or using our free, award-winning mobile app
- Our multi-award winning SIPP has no costs for setting up a SIPP, transferring in your existing pension or paying money in
- Flexibility in taking your pension benefits - when the time comes to access your SIPP you can take all your fund in one go, take smaller lump sums and/or take a regular income. You can also use all, or part, of your fund to purchase an annuity.
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.
Is a SIPP right for me?
- You will be responsible for your own investments in the SIPP, so you need to be comfortable making these decisions
- If you are unsure about whether to consolidate your existing pensions into a SIPP you should take advice from a suitably qualified financial adviser
- If you are a member of a final salary pension scheme worth £30,000 or more, or a pension scheme that includes a guaranteed annuity rate, that is worth £30,000 or more, you are required to take financial advice before you can transfer these to another type of pension.
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.