Need to consolidate your pensions?
Ever heard of a Pension Tracing and Consolidation service? To be fair we hadn’t until really recently. But if you’ve worked for several different employers over the years you may well have been a member of the pension scheme there, even just for a short while, so its possible you might want to consider the need to consolidate your pensions.
In this article Dawn Hutchings, founder of Lucesco Ltd, talks to us about Pension Tracing and Consolidation and what it could mean for you.
If you are considering a mid-life career change or aiming to reduce your working hours, then you will no doubt be assessing your financial situation. And your long-term retirement planning (pensions) should be no exception. Finding out what you have tucked away, valuing it and determining when you can access it is essential in your mid-life plan and could indeed help you bridge that gap between where you are now and where you want to be.
A Pensions Tracing and Consolidation service helps you to identify and value all the various pension benefits you may have accumulated in your career; some of which you may have overlooked or undervalued. Then if applicable, they can be consolidated into one, more suitable plan with an investment strategy to suit your current goals and needs.
In 2015 Pensions Flexibility was introduced, which means that there are a great deal of options open to you for retirement, semi-retirement and tax-free withdrawals from your pensions. Getting the most out of your pensions is complex, so it’s certainly worthwhile considering professional advice.
Many of us have worked at several different employers over the years and may well have been a member of the pension scheme there, even just for a short while. You may not have a recent record of these pension benefits being held for you and evidence shows that the value of them is often underestimated. This is where a Pension Tracing and Consolidation service can help you.
Miss B, who is now self-employed, came to us feeling she should be making more provision for the future. Previously she worked just 6 years at one company and thought she would have a few thousand in the pension there. When valued, it turned out to be worth around £100,000, which was a healthy start to her new plans.
Mrs A, wanted to work out when she could semi-retire. She “had a few small pensions from her old jobs”, that we established had a combined value of around £200,000. She now works part-time.
What to do if you need to consolidate your pensions?
Identifying and valuing your pension benefits is just the first step in the process. Once you know what you have in the pot, you will need a solid investment strategy that you are comfortable with to get you where you want to be. Like many people you may not have much experience in investments, but don’t feel anxious or embarrassed about that. Taking advice from a professional will boost your knowledge and enable you to understand the options that are most suited to you.
When all your exciting new plans are in place, regular reviews are the perfect way to keep on track and be confident in your financial situation; leaving you free to enjoy whatever mid-life journey you are on.
Lucesco Ltd.provide their services in conjunction with a highly qualified Pensions Specialist, whose advice is fully regulated by the FCA and bespoke to your individual needs in mid-life.
With our combined experience we can help you to uncover the pension benefits you are entitled to and prepare an informed, relevant and realistic plan for your mid-life and beyond.
More about Lucesco Ltd.
Lucesco can help you to generate hands-free second incomes through property investment and pensions, with a view to reducing your working hours and improving your lifestyle.
Found this article useful? Why not read Get Financially Fit in your Midlife here.