The value of investments can fall as well as rise, and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply.
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Three reasons to consider bringing your pensions together
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01
It’s easier to keep track of your money
Having all your pensions in one place could make it much easier to keep an eye on how much you have and how it’s growing.
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02
You could save on fees
The overall costs and charges involved with a pension have been coming down, which is good. But you could still benefit from consolidating your pensions to one with lower fees than those you’re currently paying overall.
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03
Your pension could do better
It’s possible that, over time, some of the underlying funds within a pension will lose their edge. Perhaps the main manager moves on, for example. This can leave a fund untouched and unloved – left to market movements. Making sure all your pension savings are well-managed now and into the future could make a big difference.
How easy is it?
Despite these possible benefits, you may be put off by thinking it’s too much hassle. But it doesn’t have to be.
If you’re transferring from one ‘defined contribution’ scheme to another, it’s often quite simple and can be done online, with something like our very own NatWest Invest.
A defined contribution scheme is a type of pension where you agree how much you pay in, but don’t know how much you’re going to get back because it depends on how the underlying investments perform.
Other reasons include:
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01
Already knowing what you’re going to get
If you have a defined benefit (DB) scheme, it brings you a set outcome, usually based on your time with an employer and final salary. And many defined contribution schemes, including NatWest Invest, won’t take transfers from DB schemes.
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02
High exit charges
Some pension schemes charge you quite a lot if you transfer out of them.
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03
A better retirement income
The amount of money people get each year when they retire – known as the ‘annuity rate’ – has fallen over the last decade, so if you’re getting a good, guaranteed rate, it could be worth holding on to. Your current pension fund may also come with a guaranteed rate of return.