Don’t lose track of old pensions

If you have changed jobs a few times, moved home, or started a company pension scheme but forgotten about it when you switched employer, your savings could be part of an estimated £400m in unclaimed UK pensions.

That’s quite a figure. The number hasn’t been plucked out of the air. It has been calculated by the Department for Work and Pensions (DWP). It’s money that should be part of people’s portfolio of investments as they plan ahead for retirement.

This doesn’t just affect those close to pensionable age. If you are in your thirties or forties you could have several thousand pounds saved in a pension scheme. Imagine what that could contribute to your eventual retirement earnings if it was properly managed?

According to WHICH, the average person will hold about eleven jobs during their lifetime. They also estimate that four out of five people do not know where one or more of their pension pots are located.

Sadly, many people have no idea how to track down those ‘missing’ funds. Perhaps that is because they have mislaid the paperwork? Not having those vital account details to hand is something that Logic Wealth Planning hears again and again from clients.

Consolidating pension pots

If you have multiple pension investments running, consolidating them is an option. Left in isolation, the individual pension pots might not perform as well as they could. Bringing them together may be a wise financial move as you head towards retirement. The first step is to take professional advice.

If you are unsure about old pensions, contacting the employer for details is the best place to start. There is also a free Pension Tracing Service provided by the DWP. The website tool was launched in May 2016 and it has been used over a million times by savers looking for pension information.

Is it safe to move pensions?

The golden rule is to always take advice before you consider moving a pension investment. Logic Wealth Planning has helped people think about retirement planning for many years. We are here to help.

Potential reasons for moving a pension might be because you are seeking better investment performance. It might be lower charges for running your investments. It could help to boost your retirement income and allow you to access to a wider range of investments.

One major consideration is whether you have a final salary company pension. These are also known as defined benefits schemes. Many experts will advise you to leave them in place, because of the guarantees associated with such pensions.

Depending upon your circumstances, you might have reasons for wanting to transfer your defined benefit pension. Whatever your plans, a full evaluation with a qualified IFA will help to make the best decision for you.

What next?

As with all financial matters, don’t leave it for a rainy day. It’s your money. You have a choice to have full control of it and how it should be working for you. Some financial housekeeping makes sense.

Make today the day you track down those old pension savings. You have a number of options to choose from. Receiving Independent Financial Advice will help you to plan a more stable and financially comfortable future.

The Logic Wealth Planning team is here to assist if you need any advice about pensions. We help people assess their options and get personal savings plans in place.

Start the conversation with a quick call now: 0808 1234 321