Growing numbers of providers and platforms are encouraging savers to switch their existing defined contribution company and personal pensions, claiming it will cut charges and make them easier to manage.
Pension consolidation, as it is called, also reduces the risk of losing track of the many company pensions workers build up during their career.
While it works well for some, it can be a huge financial mistake for others, who may sacrifice some generous “safeguarded benefits” that are unavailable on today’s schemes.
Many do not know they have these benefits, because they are buried in the small print of a scheme they joined decades ago. Yet these can be very generous by today’s standards, as they were offered in the 1980s and 1990s, when investment growth and interest rates were far higher.
Pensions expert Stuart Feast, chairman of Zippen, which offers low-cost “simplified advice” on transfers and switches, is warning of costly errors that could wreck your retirement plans.
GENEROUS OLD SCHEMES
Consolidating your pensions into a single pot can make sense, said Feast: “It is easy and convenient to have everything in one place but it can also lead to extremely poor outcomes.”
Bu hikaye Sunday Express dergisinin August 21, 2022 sayısından alınmıştır.
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Bu hikaye Sunday Express dergisinin August 21, 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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