Two thirds of UK financial experts believe that consumers should consider combining multiple pension pots into a single scheme in order to improve how they can benefit from their pension arrangements, according to research conducted by Skandia.
Multiple pension arrangements are common as people typically move jobs a number of times throughout their career. Combining these into a single plan gives people the opportunity to see clearly how their money is invested and ensure it is appropriate to their individual circumstances, Skandia says. Having one pension plan can give people more control over what is, aside from their home, probably their biggest investment.
It is now common for people to have more than one pension fund. For most, pensions are a medium to long term investment, comments Nick Bladen, pensions marketing manager at Skandia.
It’s all too easy to forget that how you invest your money has the single greatest influence on what you get back when you retire. Any opportunity to gain better control should therefore be very attractive to most people. Consolidating pensions into a single plan is a great way to keep on top of it and ensure that the money is invested wisely, Mr Bladen adds.