Don't hate, consolidate
Updated: Sep 3, 2020
WTF is this blog about!?
Unless you 'work for daddy's company, yah', you're probs gonna rack up a fair few pensions, which can be super difficult to keep track of.
So why not combine them into one, easy-to-manage, sparkly new one!?
As boring as pensions sound, the chances are they're going to be your biggest asset someday - so that's pretty cool stuff! Yet most people don't have a clue where their pensions are, how much is in them or what they're being charged 🤯
Wait, why tf would I have more than one pension!?
Pensions are set-up by your boss, so you're likely to get a new pension each time you move jobs, unless you've really got your financial s*!t together and you take your pension with you each time! And, on average, us youts are expected to work 11 different jobs during our never-ending careers, which means we could rack up 11 different pensions - sod managing that!
Rather than keeping your 11 pensions with separate providers, meaning you have to check multiple websites each time you want to find out how much you have saved, where your money is invested and how much you're paying for it - why not combine all of your old pensions into one? Not only will this help you keep track of your pensions, it could also help you to reduce the fees you're paying and improve your performance, which could leave you with more money in retirement or let you retire earlier 🤑
What do I need to watch out for before combining my pensions?
There are lots of different factors you need to consider when combining your pensions, I've listed a few below:
The type of pension you have: if you have anything other than a bog standard defined contribution pension, it probably makes sense to speak to a financial advisor about any special benefits you'd be giving up if you transferred your pension to a new pot (i.e. you don't want to sacrifice any guaranteed income).
Whether there are penalties for transferring: most pension providers will allow you to transfer your pot for free, but some might charge you - so make sure you're aware of what these are and speak to a financial advisor about whether they can be avoided.
Whether you can save money by combining your pensions: each pension pot you have will be different, meaning it will charge different fees (you can find out more about fees in my IGTV). Moving your pensions to a cheaper provider could save you a f*@k tonne of money in the long-run!
Whether you can earn more money elsewhere: all of your pensions will be invested in different things, some of which are better than others. Moving to a better-performing pension provider could help you boost returns (although remember that past performance does not guarantee future performance).
Ok, I'm ready to combine my old pensions, how do tf do I do it!?
You could use the government's pension tracing service to track down your old pensions and spend ages on the phone to each provider to transfer them, but...
Sign-up to PensionBee by clicking here*.
Give them some information about your old pensions. If you can't remember who your old pension providers were, you can tell them what companies you worked for instead.
Hit 'confirm' - this will let PensionBee know that you're ready for them to start contacting your old pension providers to ask them about your pension pot.
What's so great about PensionBee?
As I mentioned above, one of the main things you need to watch out for when combining your old pensions is whether you'll miss out on any guarantees or face any penalties by transferring your pension. PensionBee manages this risk for you, by notifying you if they find out that any of your old pension providers will charge an exit fee of more than £10, or that your old pension comes with special guarantees, you can then decide whether you still want to go ahead with that transfer (heads up, it probably makes sense to speak with a financial advisor to help you decide).
Another thing I love about PensionBee is that, unlike other providers that seem to be stuck in the f*@king stone ages, their website is super user-friendly and, drum roll please, they have an app 🙌🏼
Also, for those of you that have been keeping up-to-date with my sustainable investing blogs and are keen to use your money to make the world a better place - PensionBee offers a 'future world' plan, which invests in eco-friendly companies.
Us millennials go through jobs like we do avocados, meaning we're likely to rack up a LOT of pensions. And I don't know about you, but I don't fancy adding 'managing a million different pension pots' to my list of life admin thanks 🤷♀️ So combining old pension pots into a single easy-to-manage, brand spanking new one sounds like a no-brainer to me and PensionBee* is hands down the easiest way to do this IMO. Just remember to watch out for the points I mentioned above and to speak to a financial advisor if you're unsure.
If you found this blog useful, please share with your family, mates and Tinder dates! And go give me a follow on Insta for more banging content.
*By using this link to open a PensionBee account, I'll receive a small reward. Note that I only promote companies that I either use myself or think are the best option out there IMO.
Now for the serious part: my blogs are for educational purposes only; they do not constitute financial advice. Please consult with an independent financial advisor for advice on your specific circumstances.