It has become increasingly common that people will change careers at least once in their lives. Research has shown that the average person tends to go through 3-7 careers before they retire. For the upcoming generation of workers, this number may be more like 5-7.

When it comes to changing careers, there is always the possibility that you are leaving accumulated pension benefits behind you with your previous employer and commencing another with your new position. With the advent of the awaited Auto enrolment Pension regime, this will be a certainty.

If you have accumulated various pension pots from different employments reviewing them is a crucial step towards ensuring a clear understanding of your expected income during retirement. While it may seem daunting, taking the time to assess and consolidate your pensions can have numerous benefits.

Maximising your retirement income

Determining the total value of your accumulated Pension entitlements helps you determine the total amount you are likely to receive during retirement. By consolidating multiple pensions into a single plan, you can potentially increase your overall retirement income. This consolidation also helps in identifying any gaps in your pension savings and taking action to bridge those gaps for a more financially secure future. A word of warning, seeking an accumulated Pension picture should be discounted for inflation. Inflation erodes the purchasing power of money over time. By converting future values into today’s euros, you get a more accurate representation of the actual purchasing power of your accumulated funds.

Simplifying your financial situation

Juggling multiple pensions from different employments can be complex and overwhelming. Conducting a review allows you to streamline your pension arrangements, making it easier to manage and keep track of your savings. Consolidating your pensions into one account simplifies your financial situation, provides a clearer overview of your retirement savings, and reduces administrative burden.

Assessing investment performance

Different pension schemes may have varying investment strategies, and it’s important to review their performance regularly. By evaluating the performance of your various pensions, you can make informed decisions about the potential need to rebalance your investments to achieve optimal returns. This could involve redistributing your investments, switching funds, or exploring other investment options.

Keeping track of fees and charges

Pensions often come with fees and charges that can eat into your savings. Reviewing your pensions allows you to assess the fees associated with each pension scheme and compare them against your desired retirement goals. By identifying and consolidating any high-fee pension plans, you can potentially save money over the long term, allowing more of your hard-earned savings to work for you.

Taking advantage of pension reforms 

Pension regulations and reforms often change over time. By reviewing your pensions, you can ensure that you are up to date with the latest rules and regulations. This enables you to take advantage of any new opportunities or benefits that might be available, such as increased contribution limits or more flexible retirement options.

Protecting against pension scams and fraud

Unfortunately, pension scams and fraud are on the rise. Reviewing your pensions helps you stay vigilant and identify any suspicious activities or unauthorised transactions. By regularly checking your pension statements, you can protect your hard-earned savings and take appropriate action if you suspect any fraudulent activities.

Is combining pensions right for you?

Combining different pensions isn’t right for everyone. You might lose certain benefits by changing policy. You might have to pay a charge to transfer to another product or provider. And remember, there’s no financial guarantee. The total value of your pension funds won’t necessarily increase if you bring them all together.

At Insight Private Clients, our team of expert consultants would review your various pensions from different employments to help you simplify your financial situation. Seeking a trusted advisor helps you make an informed decision so that you can maximise your retirement income and ensure that you do have that pot of gold you wanted at the end of your rainbow.  Get in touch with our team today.