Pension warning as it ‘may not be wise’ to consolidate multiple pots
Mr Carswell said: “This can be a complicated decision and speaking to a pension specialist to help you talk through your various options to ensure that you are making an informed decision that will enable your plans to best reflect your pension planning.”
An individual might first consider consolidating their pensions if they have multiple pension pots with various providers that have been accumulated over previous years and may not have a coherent investment approach.
Mr Carswell said: “Consolidating them into one pension pot can simplify your retirement planning, make it easier to keep track of your retirement savings and ensure your underlying investments reflect your risk profile and capacity for loss.”
Workplace and personal pension plans
Those who have opted into a workplace pension scheme could consider consolidating various pensions.
Mr Carswell said: “You can transfer existing pensions to your new employer’s pension scheme, which can be more convenient and help you avoid paying multiple provider charges.”
Consolidating pensions could also be worth considering for those who have a personal pension plan that they aren’t happy with.
Mr Carswell said: “You may be able to find a better policy elsewhere, with lower charges or better investment options, particularly if you have historical pension plans accumulated over previous years.”
Mr Robinson highlighted the importance to remember that pensions should be treated like any other investment when it comes to risk.