Make All Your Small Frozen Pensions Work Harder
Published / Last Updated on 20/03/2025
We originally shot this video 11 years and whilst the core message is the same, the ‘playing field’ has changed.
- Most people move jobs every 6-7 years.
- This means during your working lifetime; you may have worked for 7-8 different employers.
- Equally, this may mean you 7-8 different, and usually smaller pension pots.
Different Types of Workplace Pension
There are many different types of workplace pension that you may have:
- Defined Benefit (DB) Schemes – such as Final Salary and Career Average Salary Pensions – you should usually keep these are they are usually ‘gold plated’, inflation protected, guaranteed pension schemes.
- Defined Contribution (DC) Schemes – these are investment linked pensions, invested in funds that can go down in value as well as up.
- Personal Pension
- Grouped Personal Pension
- Stakeholder Pension
- Self Invested Personal Pension
- Workplace Pension
- S32 Buy Out (that has some guarantees)
- Old Style Retirement Annuity Contracts
- DC schemes may have different fund choices, fund charges and at retirement options. So, it may be worthwhile comparing and consolidating these schemes.
Why Consolidate Pensions?
- Older pension schemes tend to have higher charges.
- Pension companies often offer discounts on fund management charges the more you have in the ‘pot’, so if you have too many small pots, you may save money if you consolidate into larger pots.
- Some pension schemes will offer a wider range of investment funds to choose from.
- Some pension schemes may not offer the full range of ‘at retirement’ options, so you may need to consolidate of transfer anyway when you reach retirement.
Contact us or book a call back to discuss your pensions and a pension review/Money MOT.
