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Should I consolidate my pensions?

1st June 2024

The days of ‘a job for life’ are gone and it’s normal to have an employment journey with multiple pensions. Keeping an eye on them all is tough, which is why consolidating your pensions may allow you to pull all the strands of your retirement savings together into one manageable pot. There may be several benefits to doing this, including lower management charges, which can increase the value of your fund over the course of its investment.

Combining pensions won't be right for everyone and not all pension types can or should be transferred. To better understand whether consolidating is beneficial for you, you can seek professional guidance from a Wren Sterling Independent Financial Adviser by booking a free, no obligation apoointment through your local branch.


Making choices about your pension

You can choose to move and manage the consolidation of your pensions yourself, but this requires a level of confidence in your financial knowledge. Some platforms and providers may decline to act with you directly and will only deal with authorised and regulated financial advisers. You’ll also need to decide which of your pensions to keep, whether to invest in new funds – and which are the most appropriate ones for you.

Before making any decisions, it’s important to know the benefits and charges you’re paying on all your pensions, not just those you’re currently paying into.

Risks of transferring away

Before consolidating your pensions, you should consider whether you’ll lose any of their benefits. Potentially, you could transfer out of a pension without understanding what you’re giving up. But if you take advice, it shouldn’t happen – or your adviser will inform you that you’ll be giving up benefits and help you find a more suitable pension.

When looking at your pensions, it’s important to know the amount of investment risk attached to it compared to the level of risk you’re comfortable accepting. Choosing your pension’s investment funds will also depend on the level of risk you’re comfortable with, which can change over time.


What can an Independent Financial Adviser add to a pension consolidation service?

It’s okay to not know what you’re looking for from your pension or how you want to progress with it. If that’s the case for you, it’s worth asking yourself the following questions:

  • Do you want a flexible / phased retirement or a guaranteed income?
  • What are your aspirations and goals for the future – and into retirement?
  • When do you want to retire?

Once you’ve compiled your answers to these questions, an Independent Financial Adviser can help to explain what your options are in a way that’s easy to understand.

How does Wren Sterling choose what to recommend?

There are various types of pensions and retirement options. Choosing the appropriate solution requires advisers to discuss your circumstances and needs. This will include your assets, debts/liabilities, health, and attitude to risk.

Even if you’re not sure what you want your retirement to look like, take the time to read your scheme details to better understand your current position. Small adjustments or a pension consolidation exercise now could make a significant difference when you come to draw your pensions and enjoy your retirement.

To find out how Wren Sterling can help with your choices, book a free, no obligation appointment through your local branch today.


The value of your investments may go down as well as up and you may not get back the full amount invested.

Combining pensions won't be right for everyone and not all pension types can or should be transferred. It’s important to get financial advice before moving your pension/s, so that you are confident that you understand the costs, benefits, risks and implications involved. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Leek Building Society is a trading name of Leek United Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority with firm reference number 100014.

Leek Building Society is an introducer to Wren Sterling for investments, pensions and protection. Wren Sterling is a trading name of Wren Sterling Financial Planning Limited, which is authorised and regulated by the Financial Conduct Authority, Financial Services Register number 665653. Registered office: 13-19 Derby Road, Nottingham NG1 5AA Registered in England No. 09157918.

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