It is rare now to have a job for life. Enable’s IFAS in Bishop’s Stortford know there was a time when many workers could expect to spend their whole career in the same company. There are opportunities and limitations in the change some research suggests that average worker will have 11 different jobs during their life.
Moving from job to job will mean you have built up new pension funds but have you kept on top of them? As the government is now forcing employers to offer workers a company pension, there are likely to be more “stranded pensions” where people have lost track of what they have built up. The Association of British Insurers (ABI) already estimates that more than 1.6 million pension pots worth £19.4bn are “lost”. And the problem is expected to grow. New research from FinTech savings and investment app Moneybox shows that a quarter of workers aged between 25 and 40 already have two pots with a previous employer.
Enable’s IFAs know how important a pension is and the first thing you should do is make sure you stay on top of the information you have been given about any auto-enrolment. Every pension provider is obliged to send scheme members an annual statement, so go through yours to see what you have filed away.
For many people, simply knowing where their pension money can be enough. However, it can often make sense to want to bring all your company pensions together. Consolidating all of your pensions in one place can lower charges and avoids dealing with multiple providers but it can be complicated but afterwards, you should have a clear overview of all your retirement savings.
All your pension money could be put into a self-invested personal pension, or Sipp, which allows you to make your own investment decisions and choose from thousands of options across different investment funds and sectors. Enable’s IFA’s can help you find the right pension for you.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain.
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