I’ve had a number of conversations with a client recently about amalgamating pensions into one pot or keeping them separate.
Now the client that I was talking to is approaching retirement so needs to make decisions pretty soon on whether they consolidate their pensions.
But there are lots of people with pensions around the place and I think it’s always worth looking at consolidating pensions if nothing but locating where they are because you can easily lose sight of where they are and as the years go on they’re harder to locate.
So in terms of amalgamating pensions into one pot, if you have company pensions and they’ve defined contributions you should be able to amalgamate them into the one pot.
And the advantage of doing that is that you keep everything under one roof, you have sight of everything, it’s easier to manage and you see the retirement income from the pension.
From a bereavement point of view it’s easier to manage in terms of estate management you just have to locate one pension.
In terms of keeping them separate, if you are 50 or over and you have a pension from a previous employment you can access that and a tax-free lump sum so that can become a contingency fund.
You can potentially have access to a wider range of funds across the market if you have different pensions in different places.
And it gives you greater flexibility in terms of if you want to continue to work in retirement, maybe part-time, you can access some of the pensions and leave the others as they are until age 75.
So it gives you greater control and flexibility in terms of when you draw the pensions down.
If you found this article helpful and would like to learn more about your pension transfer options, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325☎️
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