sm129 - Flipbook - Page 8
Retirement
Over £31.1 billion
of pension assets
held in lost pots
Why bringing your pensions together could simplify your retirement
In today's working world, it is
increasingly common for people
to change jobs multiple times
throughout their careers. While
each new role can bring fresh
opportunities, it can also leave
behind a collection of workplace
pensions with different providers.
Research shows that there are
nearly 3.3 million lost pension pots
in the UK, worth over £31.1 billion
in assets [1].
O
ver the years, these pension pots
identify any gaps in your planning while there is still
can become difficult to track, making
time to address them.
it harder to know exactly how much
you have saved for retirement. Many
Simplifying retirement planning
people are surprised to discover they have several
Managing multiple pensions often involves dealing
pensions accumulated from previous employers.
with different providers, investment strategies,
Some may have paperwork filed away and
annual statements and online portals. This can make
forgotten, while others may have lost contact with
tracking your retirement savings time-consuming
providers altogether. As retirement approaches,
and confusing.
having multiple pension arrangements can create
Consolidating pensions can simplify
unnecessary complexity and make financial
administration by reducing the number of
planning more challenging.
accounts you need to monitor. Rather than
juggling several pension arrangements, you can
Building a clearer financial picture
focus on a single plan that is easier to manage
One of the main reasons for reviewing your
and review. For many investors, this simplicity can
pensions is to gain a complete overview of your
provide greater confidence and engagement in
retirement savings. When pension pots are spread
their retirement planning.
across different providers, it can be difficult to
assess how much income your savings may
generate in later life.
Bringing pensions together into one plan can
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Understanding charges
and investment performance
Another reason some people consider pension
provide greater visibility and make it easier to
consolidation is the chance to review charges and
monitor performance, review contributions and
investment performance. Pension schemes can
assess whether you are on track to achieve your
have different fee structures, which may affect long-
retirement goals. A clearer picture can also help
term returns.
