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Bradbury Robinson

Consolidating Pension

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I got talking to a guy a few months ago and he was extolling the virtues of consolidating any pensions you may currently hold into one pot, with the primary aim to be getting the fees down under 1% if possible. I didn't get the exact product he was talking about but have done some research and think it could be either a SIPP or a personal Stakeholder pension.

I'm currently thinking, as I have three pensions from previous jobs, that this may be worth doing. Has anybody any experience in doing this or any advice on the best types of pensions to look at if suitable? I'll obviously need to dig the current pension details out and clarify the annual charges and any exit fees.

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I got talking to a guy a few months ago and he was extolling the virtues of consolidating any pensions you may currently hold into one pot, with the primary aim to be getting the fees down under 1% if possible. I didn't get the exact product he was talking about but have done some research and think it could be either a SIPP or a personal Stakeholder pension.

I'm currently thinking, as I have three pensions from previous jobs, that this may be worth doing. Has anybody any experience in doing this or any advice on the best types of pensions to look at if suitable? I'll obviously need to dig the current pension details out and clarify the annual charges and any exit fees.

Look which one of the 3 has the lowest fees for the funds you want (eg equity tracker) and move the other two to that one. It's a bit of a fiddle but i believe its in the rules that fund switching including transferring between DC schemes should be free of charge. By the way - you should aim to get your fees to 0.5% or lower for simple funds.

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I got talking to a guy a few months ago and he was extolling the virtues of consolidating any pensions you may currently hold into one pot, with the primary aim to be getting the fees down under 1% if possible. I didn't get the exact product he was talking about but have done some research and think it could be either a SIPP or a personal Stakeholder pension.

I'm currently thinking, as I have three pensions from previous jobs, that this may be worth doing. Has anybody any experience in doing this or any advice on the best types of pensions to look at if suitable? I'll obviously need to dig the current pension details out and clarify the annual charges and any exit fees.

Are these final salary schemes or money purchase? Assuming the latter then something along the lines Garch suggests is the way to go. If you can;t transfer money into any of your existing pensions, then open a new SIPP and buy the lowest cost index trackers you can find. It would be worth paying an IFA for an hour or two of advice I would say - avoid any advisers who are paid on commission like the plague though.

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Open a low-cost SIPP (charges with any serious provider will be under 0.5% these days, and could be much lower - e.g. 0.15% - if you have a big pot).

Your SIPP provider will be only too happy to do the legwork of transferring other pensions in.

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Without digging all of the documents out I believe these are all stakeholder pensions and from memory most of the fees are around or above 1%. If this is the case is opening a fourth pension an option and transferring into that with the lower fee?

Having had a look at SIPPS I'm not sure the amount of control that they allow would be a) suitable or B) necessary, so that is why I was also looking at stakeholder pensions, they seem to be a bit more hands-off than the SIPPS. Is this the case?

@hotarimail - I agree with your comment but I'm just after some pointers here and would look for professional advice if I wanted to proceed.

Thanks for the comments so far.

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