Pension consolidation What you need to know

Pension consolidation What you need to know by Michael Cheary Not sure what happens to your pension when you change roles?As we move from one company to the next, a lot of us leave our pensions behind. But that may not always be the right thing to do. In fact, that money could potentially be working harder for you if your pensions were combined.Heres why combining your pension benefits might be right for you:Four reasons to consider combining your pensionsIt’s important to remember that you don’t need to wait until you change jobs before considering the benefits of pension consolidation.Making the most of your pensions now, could have a significant impact on the kind of lifestyle you could enjoy in retirement. And you should never leave it to hindsight to start planning.Here are 4 reasons why you might consider bringing your pensions together1. Opportunity for a better returnYou may find that other pensions offer the potential for a better return on your investment than your existing pensions â€" giving you the opp ortunity to boost your savings in retirement, without saving any more.Just remember, as with all investments, the value of your money can go down as well as up and you may not get back the original amount invested.  2. Reduce risk as you move towards retirementYou might actually benefit from moving your money to a pension that offers funds with less risk which may not have been available to you before.This can be particularly important as you move towards retirement, when you might not want to take as much risk with the money you’ve saved throughout your working life.3. Lower chargesIf you have several different pensions, it can be difficult to keep track of the charges you’re paying to existing pension providers.If you combine your pension into a new plan, lower charges could be available â€" providing you with the opportunity to boost your retirement savings even more. However, you need to fully understand the charges on your existing plans, before considering moving your pen sion.4. All your money in one placeCombining your pension into one pot, reduces paperwork, helps you keep track of your investments and makes it easier to estimate the income you can expect to receive in retirement.However, before you decide to consolidate your pensions, make sure you won’t lose any benefits attributable to your existing pension.Five key pension considerationsRetirement planning: What you need to knowYou may still have five, ten or fifteen years to go to retirement but that doesn’t mean you should leave retirement planning to the last minute.Transferring now gives you an opportunity to benefit in your final few years of employment, and will help put your mind at rest as you get close to giving up work. There are circumstances where transferring may not be right for you. That’s why getting professional financial advice is so important.The best course of action will all depend on what types of pension you have, how long you have until retirement and your persona l goals and objectives.  Ready to find a role with a better pension? View all available jobs nowFind a job What Where Search JobsSign up for more Career AdviceSign up for moreCareer Advice Please enter a valid email addressmessage hereBy clicking Submit you agree to the