Pension – To Consolidate or Not to Consolidate?

In the old days, people would secure a job after leaving college and would stay with their first employers until they collected their golden tickets. Today, people are open to changing jobs more frequently. In fact, according to a research by life insurance firm LV, people in the UK change employers every five years on average.

This constant job hopping means that a person can have a hard time keeping track of their pension and how they are performing in individual posts.

The question then is: should one consolidate their pensions to make things easier for themselves on the monitoring and management side?

The Case for Consolidation

The benefits of consolidating your pensions into one big pot, let’s say a SIPP (self-invested personal pension), are many.

That said, it isn’t all roses when it comes to consolidating your pensions. These are dangerous waters, and you should tread them carefully…

The Case Against Consolidation

Consolidating your pensions can possibly require you to give up on employer contributions and any specific bonuses or protections that may be tied to your individual pension account. Then obviously, there are exit penalties to consider too.

In addition, if you come from a final salary scheme, consolidating your pensions will mean losing out on a guaranteed income at retirement. This is a very important point, and one that you need to discuss with someone who is well versed in the world of pensions.

Reach Out for Help

Here, at London Stone Securities, we offer comprehensive professional advice on pension consolidation. We study each case in individuality and suggest the best strategy that suits a client’s circumstances and needs. Our experts can also help you invest for your retirement in a safe way, so that comes as an additional advantage when working with us. We understand the value of your hard-earned money and we make sure you extract the most benefits from it. Contact us today for an initial free consultation.

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