Managing multiple pensions from different jobs can quickly become overwhelming. People
now change jobs more frequently than in the past, when staying with one employer for an
entire career was more common. As a result, you now may have several pension pots from
previous employers. Even if they are with the same provider, they might still be separate. At
BWCI, we understand that pension management can be confusing. However, combining
your pension pots into one could simplify things and improve efficiency. Here’s why it might
be worth considering.
Lower administrative costs
One of the key benefits of consolidating pensions is that you could save on administrative
fees. When your pension pots are spread across multiple pension schemes, each one is
likely to carry its own set of management and servicing costs, which are typically
deducted from your savings. By bringing your pensions together into a single pot, you may
be able to reduce these costs. Many pension providers, including BWCI, offer lower fees
when you consolidate your pensions, helping your savings go further.
Also, most employers cover the administration costs of their workplace pension while
you’re employed with them as part of your benefits package. By transferring your pension
into your current workplace scheme, you may be able to save on these costs.
Easier to manage
It’s much easier to track your retirement savings when they’re all in one place. Instead of
keeping tabs on multiple statements, logging into different online portals and dealing with
different providers (which may not be in Guernsey), a single pension pot simplifies
everything. By bringing together all your contributions, investment growth and pensions
into one place, you can manage your savings more effectively and stay on top of your
retirement goals.
More investment control
Having all your pension scheme funds in one pot gives you more flexibility and control over
your investment choices. When you consolidate, you can assess the options that work best
for you, rather than having different investment strategies scattered across multiple pots.
By reviewing your fund options regularly, you can ensure your pension is aligned with your
goals and risk tolerance as you move towards retirement.
Easier to track your retirement progress
Tracking the growth of your pension pot is easier when it’s consolidated. You’ll have a
clearer picture of how much you’ve saved, how your investments are performing and
whether you’re on track to meet your retirement income target. With multiple pots, this can
be harder to monitor, and some pots may not have web access.
Simplified paperwork and administration
With a single pension pot, you’ll receive fewer communications, reducing the paperwork
you have to deal with. Plus, when you retire, managing one pot makes the whole process
much more straightforward. This streamlined approach helps avoid the risk of losing track of
any pensions, especially as your retirement approaches.
Keep in mind…
Even if both your current and previous employer pensions are with the same pension
provider, it’s important to remember that they may still be separate pots unless you
complete a transfer. Providers won’t automatically combine your pensions for you, you’ll
need to fill out a transfer form to bring everything into one pot. At BWCI, it’s easy to check if
your pensions are combined or not. Just simply log into the member platform and your
different pensions will be listed.
Is consolidation right for you?
Before consolidating your pensions, it’s important to review all the options available to you.
You should consider factors such as any benefits or guarantees that you may have in your
existing pensions, any potential tax implications and the investment options available
through your new pension pot.
At BWCI, our expert team is here to help you make informed decisions about your pension
savings. If you’d like to explore whether pension consolidation is right for you, get in touch
with us today.
If you want to find out more about our different pension products in Guernsey, you can speak to our
experienced and trusted team on 728432 or email pensions@bwcigroup.com.
Trustee and Administration services are provided through BWCI Pension Trustees Limited, which is regulated
and licensed by the Guernsey Financial Services Commission under The Regulation of Fiduciaries,
Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2020.