Many people have a number of old Defined Contribution pensions from previous employers, as well as one or more personal pensions. Each of these plans or schemes will have different charging structures and each contain different investment funds and options. To arrange a free initial discussion about your pensions, at your home, workplace or our offices contact us today.
Some might be ‘high risk’ while other plans might be sitting in cash and this may not reflect the level of investment risk you are willing and comfortable to take for the potential of longer term capital growth.
Ensuring you have the correct investment strategy for your needs so that the returns generated are in line with expectations, the best charging structure for your goals and a pension plan that allows you to spend your money in the most efficient way is paramount.
Older plans can be expensive and limited on investment choice with poorly performing funds and the paperwork can be confusing and enough to put you off reviewing your options.
Consolidating everything into one easy-to-manage-pension may be a solution, this being called ‘Pension Consolidation’. However, it is important to understand what kind of pensions you have and whether it is to your benefit to move all, some or none of these before retirement.
Clifford Osborne provides pension consolidation advice and services to assist you on your current pension arrangements and explain any advantages or disadvantages to switching these into one plan. We are based in Eastbourne, East Sussex and serve Lewes, Seaford, Bexhill, Hastings, Newhaven, Crowborough, Uckfield. Tunbridge Wells, Brighton and Hove
We will provide a pension report which will clearly identify those pensions that can be consolidated and those pensions that need to remain where they are.
The result will be a significant reduction in the amount of paperwork you receive annually and a better pension solution. A pension switch or transfer to simplify and align your plans could save you thousands of pounds while reducing the overall investment risk.
Modern day personal pension plans are simple to understand, useful and very tax efficient structures that can be used to save up money far more quickly that non-incentivised structures, due to the extra inputs from HMRC.
Pensions remain one of the most tax-efficient but most complex ways to save. You no longer have to save in old insurance company schemes with potential high charges and poor investment and fund choice.
We now have far more flexibility to use the ‘pension rules’ to your advantage. We can now use a ‘pension wrapper’ to hold a portfolio of investments which is then sheltered from tax allowing these funds to grow extremely efficiently.
Regardless of the medium used to accumulate the savings, careful planning to ensure that you are saving enough on a monthly or annual basis is critical. Regular reviews to assess investment returns, inflation, charges, annuity rates and volatility are paramount to keep target retirement income on track.
Defined Benefit or Final Salary Pension Schemes carry certain guarantees and benefits that are almost impossible to replicate in the personal pension environment. Such contracts should only be transferred in very rare situations as doing so will almost always result in a worse outcome for the individual.
These valuable employer sponsored pension schemes guarantee a level of increasing retirement income for the member, whereas the income available from personal pensions (PPS) and occupational defined contribution (DC) schemes is a direct result of how the individual manages the investment returns and charges over the term.
Clifford Osborne are Independent Financial Advisors (IFA’s) based in Eastbourne, East Sussex, and serve clients in Eastbourne, Lewes, Seaford, Bexhill, Hastings, Newhaven, Crowborough, Uckfield, Tunbridge Wells, Brighton and Hove Please contact us if you would like to know more about pension consolidation.