Pension consolidation is a buzz word in financial planning with many articles and videos produced which make it sound more complex than it perhaps needs to be. Simply put, it means if you have more than one pension, getting them organised, but getting them organised in a sensible way.

To consolidate your pensions effectively, you must know:

-        What are your goals? How close are you to meeting them?

-        The value of your pensions

-        The costs of your pensions

-        What your policies offer you, for example protection, greater standard benefits, guaranteed annuity rates or more tax free cash

Once you know the answer to these points, we can understand what they mean to you and what you want to achieve at and in retirement.

All of your investments and pensions can then be invested together in a way you are comfortable with (for example how much risk are you happy to take) and in line with your goals, whether this is capital growth, tax efficiency, withdrawal of income or inheritance tax planning.

Many people ask the best time to consolidate their pensions. Of course, this always depends on an individual’s circumstances but more often than not, the best time to consolidate is when you are coming to retirement, or at retirement.

At this point, it’s the perfect time to take stock of your goals and ensure your affairs are in order. This is important not only for you, but also provides you with reassurance that you have organised your finances to make everything as straightforward as possible for your next of kin.

We can help you to understand your position, recommend suitable changes in line with your goals based on our intensive independent due diligence and assist in all areas of later life financial planning so you can give up work with peace of mind that you have put yourself in the best possible position to enjoy your well-earned retirement!

If you would like us to review your investments as part of a complimentary financial review, call 0117 3636 212 or email office@haroldstephens.co.uk.

Harold Stephens provides friendly financial advice in the local community on a face-to-face basis in a welcoming location at 50 High Street, Westbury on Trym, BS9 3DZ. The firm specialises in advising later life clients about investments and pensions, long-term care planning, inheritance tax and estate planning.

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest.