What should I consider before consolidating my pension pots?
Updated 23 January 2019
There are a number of things to consider before your consolidate your pension pots.
You might lose valuable features and other benefits like:
- protected tax-free cash
- protected low pension age
- waiver of contribution
- life assurance benefits
- any self-investment option
- employer contributions can’t be made to a Retiready Pension but can continue to be made into an Aegon plan provided by your employer - find out more
You might incur higher charges so make sure that you’re satisfied any such charges are justified.
Any trusts or expression of wishes that you’ve already set up won’t transfer over to a new Retiready Pension.
You should be comfortable with the investment choices that you make as you may lose features, protections, guarantees or other benefits when you transfer. If you’re not sure, you should get financial advice - there may be a charge for this.
A transfer for consolidation purposes is from one capital at risk pension product to another – so the value of your investments after any consolidation can still fall as well as rise and the final value of your consolidated pension pots may be less than paid in.
Any new funds you move your money into will have their own set of risks that will be detailed in the fund information that will be available to you.