Find and combine your pensions

Pensions here, there, and everywhere. Combining them could take some of the admin out of managing your retirement savings, and it might be easier than you think. This is the pensions manual.

In this episode, we'll be answering the question many of you are asking. Should I combine my pensions?

Today's objective, explore the benefits of combining pensions, learn how to find your current pensions, and discuss the things to consider before you transfer into one pot.

Step one, combining pensions. Most of us change jobs a few times in life. Often this means multiple pensions. Easy to lose track of, even easier to forget about. A simple fix? Bring them together into one pot.

Step two, understand the benefits of combining pensions. More convenience. One pension is easier to manage. Less admin, fewer login, and fewer people to update for things like a change of address. Greater control. Bringing pensions together can give you more say over how your money is invested. More flexibility. Combining pensions can potentially lead to greater flexibility at retirement. Older pension plans can be limited. Newer plans like a SIPP often have more investment choices or you can buy ready-made options within a SIPP and pick additional investments on top of this. Just remember the value of pensions can go down as well as up. So you could get back less than has been paid in. There's no guarantee you'll be any better off by transferring. Easier to track. When everything is in one place, it's easier to see how your retirement money is shaping up. Check if you're on track towards your savings goal or should start putting away a bit more. Seeing where your money is invested, how it's performing, and making changes has never been easier. Potentially lower costs. Some older pensions have higher charges. Transferring to a modern plan could mean lower admin and fund management fees. Better yet, the more you invest, the less some providers charge.

Step three, check before you combine. Check for exit fees. Look for this information in your pension documents or ask your existing provider or a financial adviser for help. Compare charges. A quick comparison of charges can help you decide if transferring is right for you. It helps you avoid surprises and move your money with confidence. Check what benefits your current pension offers with your current provider. Some will include safeguarded benefits like guaranteed income or guaranteed annuity rates which can give you guaranteed income for life. Check the value. If your pension includes safeguarded benefits and is worth more than £30,000, you must get financial advice before moving it, which you may have to pay for. Some schemes will refuse to accept any transfers of safeguarded benefits or require you to take advice before transferring whatever they're worth. Other valuable benefits such as a higher than normal tax-free cash entitlement or life cover will be lost on transfer. So, it's important to learn what you might give up before you transfer.

Step four, find your pensions. If you're sold on combining your pensions, first thing you need to do is track down all of the pensions you have. You could use a pension tracing service. The government has its own service or you can use Avivas. It's called Find and Combine. It's free to use. There's no obligation and you don't even need to be an Aviva customer. Aviva contact your previous employers or pension provider for you and share the results. Alternatively, check for documents from previous employers, old pay slips, annual statements. You could contact the HR team or the pension administrator. You can also check how much state pension you might be able to claim based on your national insurance record. You can do this online or by calling the future pension centre.

Now you know the right steps to combine your pensions with confidence and the benefits it can bring afterwards. Find out more at aviva.co.uk and watch the rest of the pensions manual series to keep learning.