SAVERS HAVE MISLAID OVER 400M IN OLD PENSION POTS DONT LOSE TRACK OF YOURS
If you’ve changed jobs during your career, you may find yourself with several pension pots with different employers or pension providers. It’s obviously very important to track down all the different pension schemes you’ve paid into, as you’ll want to be sure that when it comes to retirement you’re claiming everything you’re entitled to.
It can be easy to lose track of paperwork or forget to update your address details when you move home. If you find yourself in this situation, you aren’t alone. There’s estimated to be £400m in unclaimed pension savings in the UK. If you’re in this position, there are various steps you can take. Contacting old employers for details can be a good first step, and there’s the free Pension Tracing Service provided by the Department for Work and Pensions (DWP). This service was launched back in May 2016 and has been used more than a million times by savers. Exploring your options You may want to consider consolidating your various pensions into just one pension pot, as this will cut down on all the paperwork. The most obvious reason for moving a pension is to improve investment performance and lower the charges to boost your retirement income. But before you make your move, there are downsides that you need to consider. If you’re in a final salary company pension, also known as a defined benefits scheme, it will often be best advice to stay put because of the guarantees attaching to your pension. Some money purchase schemes, referred to as defined contribution plans, also offer guarantees that you need to seriously consider before moving your pension savings into an alternative scheme. A step in the right direction It’s a good idea to keep a note of your pension pots, and seek professional advice before deciding whether to consolidate them. A pension review will help you understand how much you’ll have to live on in retirement, and whether you need to top up your contributions to ensure a better level of income in your later years. Make sure you know your state pension age and get a forecast of how much you’ll receive. 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. Paul McCoubrey, Darren Curry or Michael Hamill can be reached on 02890769769 or by replying to this email.