The power of together: Unlocking the benefits of pension consolidation

As we move jobs and seek fresh opportunities throughout our lives, it's not unusual to accumulate a mix of pensions from different employers or personal schemes. Managing multiple pension pots can be cumbersome, and it may be difficult to get a clear picture of your retirement savings and to maximise their potential. This is where pension consolidation can make a world of difference to your future.

A default pension fund (or funds) you invested in years ago may not be the most appropriate now: they might not be the most efficient (needlessly costing you money yearly), and your circumstances and goals may have shifted dramatically.

We can help you to streamline your finances, unlock cost efficiencies, and pave the way to a more secure retirement – through expert financial advice, better control and a cost-effective investment approach.

Why you should consider consolidating pensions

Simplify your finances – and your life

Juggling multiple pension plans can be a headache and time consuming. By consolidating your pensions into one place, you simplify your financial situation. This makes it easier to track your progress towards your retirement goals. With everything in one account, you’ll have a consolidated view of your investments and clearer insight into how your money is performing.

Make more of your money

Each pension plan comes with its own set of fees. These can add up, eating into your savings over time – often with a profound impact. As we show in this article, a 40-year-old with a pot of £200,000 (contributing £300 a month, with an average yearly return of 6% and 1% in fees) could grow their pot to £852,991 after 25 years. Using the same assumptions, yet paying 2% in fees, and the pot would grow by over £167,000 less.

Imagine getting these insights sooner – and taking steps to avert this outcome for your own circumstances. Consolidating your pensions with a provider like Netwealth (and a cost-effective fee structure) means more of your savings are invested and working hard for your future. See examples of what that extra freedom could mean for you in our fees page.

Lower fees can make a big difference to many aspects of your life.

Maximising investment growth opportunities

Different pensions often come with varying levels of investment performance and asset allocation (the mix of assets, such as company shares and bonds) – and are not always adapted to how we live now. 

Consolidating them allows you to align your investments with your specific risk tolerance and retirement objectives as they stand today – this may have changed quite a bit from the goals and outlook you had years ago. You should also evaluate the risk you are taking: not enough and your returns might not meaningfully outpace inflation; too much and your asset values might not recover for when you might need to draw from your pension.

The key is to get the balance right between risk and reward – our investment portfolios (and approach) aim to provide growth while maintaining balance and control, ensuring your money works smarter.

See if tailored financial advice could help

For many aspects of your finances, including retirement planning, one size does not fit all. It may therefore be an appropriate time to seek advice – consolidating your pensions gives you the chance to work with expert advisers (request a video call here) who can craft a personalised strategy and refine your approach if need be.

Our highly qualified team combines experience with cutting-edge technology to deliver bespoke advice tailored to your unique needs and aspirations. How does that look? For one, we can apply what is known as cashflow modelling to show you how our overall plan will help you meet your long-term goals.

If you don’t feel the need for full financial advice now, you may still benefit from what we call a Financial MOT. This offers a hassle-free and thorough check-up for your financial health – with personalised insights and expert guidance so you can better understand how your choices could impact your financial outcome. Sign up here to get a clearer picture of your finances.

For absolutely no charge or commitment we also offer powerful tools that let you visualise various potential financial outcomes and track all your investments in one place. Why not play around with them, try out different permutations (such as investment returns, timeframe, risk and so on) and see if you could realistically meet your retirement objectives – or what to change so you can. 

Securing your financial future

Consolidating your pensions is not just about simplifying your finances; it’s about enabling you to achieve your goals. With Netwealth’s blend of expert advice and cost-efficient investment strategies, you can take control of your retirement planning, ensuring your hard-earned savings are managed effectively to support the lifestyle you deserve.

And don’t think it’s an undue hassle – when it comes to changing providers we do all the work for you, as we explain here.

Want to find out more and realise the benefits of pension consolidation? Get in touch here.

Please note, the value of your investments can go down as well as up.

Netwealth offers advice restricted solely to our services. We do not consider the whole of the market, nor offer advice in relation to tax compliance, insurance products, or the transfer of defined benefit pensions.