Finding Lost Pensions
It’s easy to lose track of pensions that why we can help you take full control of your retirement savings.
People change jobs, employers change their names but, more importantly, we all forget things from time to time. With that in mind, it is easy to lose track of pensions that you have paid into over the years.
Pension tracing service
Don’t underestimate the importance of keeping track of your pension. The Pension Tracing Service reckons £3 billion is lost in UK pensions, affecting around five million people.
To locate a lost or forgotten pension you can contact The Pension Tracing Service, part of The Pension Service. They have details of more than
200,000 personal and company pension schemes and will search through these free of charge on your behalf.
For the best chance of being reunited with a lost pension scheme, you need to provide as much information as possible. This can include the type of scheme; the name of the employer, and any new name it may have, and the nature of its business; the name of the pension company; and when you belonged to the scheme.
Once located, they will provide you with the latest contact details to help you track it down and take full control of your retirement savings.
Combining your pension pots
After a number of years, you may even forget about the odd pension pot. To help you manage your pots, it’s possible to bring them all together, making it easier for you to keep track of your retirement savings.
Combining your pension pots can prove a good move in many circumstances, not least as it allows you to keep track of how your investments are performing more easily.
This is a definite advantage if you are approaching retirement and want to get a grip of your various sources of retirement income.
Performance is another reason to get hold of all of your pension pots – if you’ve forgotten about one or more, the chances are they are not working as hard as you’d like. Poorly performing funds are of little use to you, and regular reviews are essential for anyone who wants to make the most of their retirement income.
Things to consider
There are a number of things to consider when you’re thinking about combining pensions:
- If you have a defined benefit (DB) pension scheme, it’s probably best to keep it. DB schemes pay out a certain retirement income every year once you reach retirement age, based on your salary and the number of years you paid into the scheme.
- If you are a member of an occupational pension scheme, you may be entitled to take more than the standard 25% tax-free lump sum. However, you could lose this entitlement if you transfer out.
- You may have other benefits from your pension (for example, life cover or dependants’ benefits), so it’s worth checking these with your pension provider before transferring out.
- If you have up to three small pension pots – each of up to £10,000 – you can take these as a cash lump sum, due to new rules introduced earlier this year by the Chancellor.
It’s also worth bearing in mind that you may pay exit fees for moving your pension pot, which may see a sizeable proportion of your hard-earned retirement income shaved off. For this reason, always check for fees and charges if you are transferring out of a scheme.
While many providers won’t impose a penalty for transferring (as they want the business), it’s still best to check this upfront.
Are you taking control of your retirement planning?
Even if your retirement planning is up and running, that’s not the end of the story. It’s important that you review your contributions, particularly if you have a change of circumstances.
If you don’t know how your planning is doing, you can’t know what your future will look like. We can work with you to develop strategies to accumulate further wealth in order for you to enjoy your retirement years.
To discuss how we could help you take control of your retirement years, please contact us 0141 231 1656for further information.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.