A Guide to Combining Pensions in Ireland
Having a pension scheme in place is one of the best ways you can fund your retirement. Throughout our working life, we may have multiple employers, so you could find yourself with numerous pension pots, some of which you might not have even remembered or thought about. Combining pension schemes, in this case, could be a wise move. After all, you want to make sure that you’re getting exactly what is rightfully yours.
In this article, we will show you what Pension Consolidation is, what benefits there are of combining your pensions, and a helpful guide that will walk you through the process. Let’s dive in.
What is Pension Consolidation?
“Pension arrangements generally allow you to transfer your pension benefits from one arrangement to another. The transfer rules depend on the arrangement you are transferring from and the arrangement you are transferring to.”
As the Pensions Authority states above, you should have the option to transfer your pension into a new plan. Pension Consolidation is the combining of all your single pension pots into one. Some small pots you might have acquired over the years include occupational pensions and even private pensions that you set up in the past, perhaps if you spent some time in self-employment.
Overall, there are some attractive benefits to pension consolidation. However, there are also some factors that should be taken into account when making the decision to combine your pensions. So, if you’re scratching your head thinking “should I combine pension pots?”, then keep reading!
Should I Combine My Pensions?
If you’ve been wondering if it is better to combine pensions, here are some of the benefits of consolidating your pension and also a couple of notes from us on things to strongly consider before making that decision.
4 Benefits of Combining Your Pension Pots
- Everything in One Place: having all of your pensions in one place will help you manage your savings easily. It will also save you time, as keeping tabs on multiple schemes can be laborious and inefficient.
- Reduce Management Fees: another positive to consolidating pensions is that you’ll reduce the number of fees you are paying. You won’t be charged per pension but charged as a lump sum.
- Easy to Track and Monitor: with everything in one place, you can easily track and monitor your investments and income and how your money is performing, fuss-free.
- Peace of Mind: the knowledge that every pension scheme you’re entitled to is together and being managed in the most efficient way.
Areas To Consider
Some pensions have generous benefits and/or can charge to transfer, so bringing them all together may not be the best decision for you. Additionally, relocating your investment does not guarantee that it will increase in value at retirement. Ultimately, the decision is yours, and yours alone! Be mindful that any decision that you make today regarding your pension, will affect your future.
If the pros are starting to outweigh the cons of combining pension schemes, then stay tuned in, as we provide you with the key steps you need to take. The choice can feel unnerving at first, but don’t worry, our expert team of financial advisors are on hand to help you make the right decision.
How to Combine Pensions
So, where do you start? We can assure you that with the right help, you can begin the process of combining your pensions by following these initial first steps.
Step One: Gather Pension Information
Option #1: The first thing you’re going to want to do is to get all the information together for each of your pension pots. This might require contacting your old employer and/or their HR department. You should then be issued with a document containing your pension information, including its value.
Option #2: If sourcing all of this information yourself feels like a daunting prospect, Campion Insurance can help. A letter of authority can be sent to you via email or post which allows us to gather all the relevant information on your behalf.
Step Two: Understand The Risks
While compiling your pension information, be sure to find out if there are any exit fees that are going to apply and any other notable risks of making the move. Only by doing so, can you make the best possible decision.
Step Three: Contact Campion Insurance
The process of combining pensions can feel gruelling and overwhelming without the right help. If you want to stay ahead, be sure to contact the Campion team of financial advisors, who can help you throughout the entire process. They will be by your side providing professional and sound advice.
Your pension should be reviewed as it changes to ensure you are saving the most suitable amount, which provides you with the best possible returns. Our Expert Advisors will assist you in deciding which investments and funds to invest in based on your risk inclination.
How Campion Can Help
Campion Insurance’s expert team can provide you with all the best information so you can make the right choice. We understand that the task at hand of combining pensions is one you shouldn’t have to do alone. Here are just some of the ways that we can help:
- Review your existing plan/s to figure out what options you have
- Provide expert guidance / answering all of your pension-related questions
- Ongoing management of your pension
At Campion Insurance, we take pride in our vast knowledge and expertise, so you can rest assured that your insurance needs are taken care of. Get in touch with one of our team members today at 0818 297 600.
Suggested Further Reading
Starting a Pension in Ireland: A Step-By-Step Guide
How a Pension Can Help Reduce Tax