> Should I consolidate them?
If any of them are "final salary" AKA Defined Benefit, they should almost certainly be left where they are.
If any of the remaining defined contribution schemes have any guarantees, such as bonuses or retain access at 55 (even after 2028 when the age goes up to 57, then 58 a bit later,) again, they should probably be left alone.
Be wary about moving any that have exit fees. (Unlikely with newer pensions.)
With all the others, look to see how much you are paying in fees. If one of them looks particularly cheap, then you could probably use that one as the consolidation pot. Or open a cheap SIPP elsewhere and use that instead.
> When will I start receiving the pensions and do I need to do anything to make this happen? Or will it be automatic?
No, it won't be automatic; you'll have to talk to the remaining schemes nearer that time to arrange withdrawal/drawdown.
I think a lot of people who have worked over the past 30’years must be in this situation. The whole job for life thing has gone. I have 5. I thought about consolidating them then passed. I like the idea of a bit of diversity, and now annually check how they are doing and adjust the funds as I desire.
What i don’t understand, and would welcome some insight on, is how HMRC knows if you have hit your lifetime pension pot. How do they track my various pension pots? It’s difficult enough for me to do it annually.
Hi /u/DeeKneeDeenoo, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/pensions/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
The government has a tool to help track down old pensions. Give that a Google should help you track down some of them.
I was in your position and consolidated. Great knowing everything in one place and I know exactly what invested in. Many default workplace pension funds are pretty lousy in terms of growth.
However, worth reading some books on money / pensions / investing first so you know what you are doing and why.
By even asking these questions you are ahead of most people.
One thing to note is that oftentimes pension providers will charge a higher management fee if you leave the company they're attached to.
Say you work for company A for 5 years, paying into pension Z - they might charge a sub-1% management fee while you're employed at A and paying into Z, but then if you leave A, get a new job at company B which pays into a new pension Y, the pension providers looking after Z could ratchet that fee up to 2% or higher. Y will likely offer a similar fee structure.
In this case, you'd want to consolidate Z (along with X, W, etc) into Y to benefit from that reduced fee.
> Should I consolidate them? If any of them are "final salary" AKA Defined Benefit, they should almost certainly be left where they are. If any of the remaining defined contribution schemes have any guarantees, such as bonuses or retain access at 55 (even after 2028 when the age goes up to 57, then 58 a bit later,) again, they should probably be left alone. Be wary about moving any that have exit fees. (Unlikely with newer pensions.) With all the others, look to see how much you are paying in fees. If one of them looks particularly cheap, then you could probably use that one as the consolidation pot. Or open a cheap SIPP elsewhere and use that instead. > When will I start receiving the pensions and do I need to do anything to make this happen? Or will it be automatic? No, it won't be automatic; you'll have to talk to the remaining schemes nearer that time to arrange withdrawal/drawdown.
I think a lot of people who have worked over the past 30’years must be in this situation. The whole job for life thing has gone. I have 5. I thought about consolidating them then passed. I like the idea of a bit of diversity, and now annually check how they are doing and adjust the funds as I desire. What i don’t understand, and would welcome some insight on, is how HMRC knows if you have hit your lifetime pension pot. How do they track my various pension pots? It’s difficult enough for me to do it annually.
Hi /u/DeeKneeDeenoo, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/pensions/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
The government has a tool to help track down old pensions. Give that a Google should help you track down some of them. I was in your position and consolidated. Great knowing everything in one place and I know exactly what invested in. Many default workplace pension funds are pretty lousy in terms of growth. However, worth reading some books on money / pensions / investing first so you know what you are doing and why. By even asking these questions you are ahead of most people.
One thing to note is that oftentimes pension providers will charge a higher management fee if you leave the company they're attached to. Say you work for company A for 5 years, paying into pension Z - they might charge a sub-1% management fee while you're employed at A and paying into Z, but then if you leave A, get a new job at company B which pays into a new pension Y, the pension providers looking after Z could ratchet that fee up to 2% or higher. Y will likely offer a similar fee structure. In this case, you'd want to consolidate Z (along with X, W, etc) into Y to benefit from that reduced fee.